UK inflation rises to 2.5%

UK inflation rises to 2.5% in July
UK inflation rises to 2.5% in July, up from the year low of 2.4%
  • UK inflation (CPI) rises to 2.5%
  • CPIH remains at 2.3%
  • Transport rises by 5.6%
  • Prices for clothing and footwear fall by 0.4%

Consumer price inflation in the UK rose to 2.5 % in July 2018 from a year low of 2.4%, marking the first rise of the year, according to the Office for National Statistics.

January’s high of 3.0% was followed by a fall in February and March to 2.5%, then remaining at 2.4% from April to June.

The rise in inflation to 2.5% was below the forecast of 2.6% by the Bank of England earlier this month.

Inflation for the last 10 years CPI July 2008 to July 2018Source: Office for National Statistics

Transport prices rise

Transport prices rose by 5.6% in the year ending July 2018, the highest 12-month rate since April 2017, with the largest contribution coming from motor fuels.

Clothing and footwear fall

Prices for clothing and footwear fell by 0.4%, the first time the 12-month rate has been negative since October 2016.

Recreation and culture

The largest upward contribution to the change in the CPIH 12-month rate came from the recreation and culture, with the main effect coming from an increase in prices for computer games.

Contributions to the CPIH 12-month rate, July 2016 to July 2018Contribution to CPIH July 2018Source: Office for National Statistics