UK inflation rises as lockdown eases – business live
Rolling coverage of the latest economic and financial news, as rising clothing, petrol and recreation prices push up the cost of living
- Hairdressers and dentists got pricier after lockdown
- UK CPI inflation rose to 1% in July
- RPI, used to set rail fares, rises to 1.6%
- The key charts
- Full story: Rail passengers face price hike
Janet Mui, investment director at Brewin Dolphin, reckons the UK needn’t fear a spike in inflation – even though clothing, fuel and furniture prices all picked in July:
“Unexpectedly strong, headline inflation from +0.6% YoY in June to +1.0% in July (consensus forecast +0.6%), was partly due to energy effects, as fuel price inflation rose from -16.4% to -12.0%.
But the core measure (ex. food, energy and tobacco) also picked up from +1.4% to +1.8%, as clothing inflation jumped from -2.2% to 0.0% and furniture inflation rose from +0.5% to +1.5%.
The Telegraph’s Tim Wallace has spotted that the cost of camping kit and ice creams also soared in July, as the pandemic encouraged the UK public to holiday at home.
He adds that the price of garden furniture jumped by 7.5% over the year, perhaps as families tried to make homeworking conditions nicer. More here.