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Consumer price index inflation rose from 0.6% in June in the UK to 1% in July


According to ONS data, the soaring cost of clothing, fuel and housewares rose from 0.8% in June to 1.1% in July

  • The National Statistics Bureau said consumer price index inflation rose to 1%
  • The new number is up 0.6% in June after economists announced it would stay the same
  • The retail price index, another measure of inflation, also rose to 1.6% last month

Inflation in the UK reached its highest level in four months in July, driven by the biggest spike in fuel prices in nearly a decade and a fall in clothing discounts from weak retailers.

Price increases by hairdressers and other service providers who had to invest in extensive PPE drove the increase in July from 0.6 percent in June to 1 percent, said the Office for National Statistics (ONS).

A consensus among economists had predicted that inflation would remain unchanged at 0.6 percent during the month.

The retail price index (RPI), another measure of inflation, also rose last month from 1.1 percent in June to 1.6 percent.

Jonathan Athow, assistant national business statistician for the ONS, said: “Inflation has risen in part due to the largest monthly increase in pump prices in nearly a decade as international oil prices rose from their lows earlier this year.

& # 39; The biggest move up was in clothing, where prices fell month on month but less than a year ago, partly due to different sales patterns over the year.

"In addition, prices for private dentistry, physical therapy and haircuts have increased as PPE must add to the costs for these companies."

The consumer price index is much lower than in previous years, but has increased this month

The RAC Foundation shows that gasoline and diesel prices have increased this year, according to research

The RAC Foundation shows that gasoline and diesel prices have increased this year, according to research

The Bureau of National Statistics shows how total retail has fallen dramatically but is now recovering

The Bureau of National Statistics shows how total retail has fallen dramatically but is now recovering

The RPI is used to calculate the cap on annual season ticket price increases in the UK.

The ONS said the CPI jump came after gasoline and diesel prices rose due to a surge in global oil prices and lockdown restrictions gradually eased around the world.

A much smaller decrease in the cost of women's clothing last month compared to last year also resulted in an increase in the cost of living.

Jonathan Athow, assistant national business statistician for the ONS, said: “Inflation has risen in part due to the largest monthly increase in pump prices in nearly a decade as international oil prices rose from their lows earlier this year.

& # 39; The biggest move up was in clothing, where prices fell month on month but less than a year ago, partly due to different sales patterns over the year.

"In addition, prices for private dentistry, physiotherapy and haircuts have increased as PPE must add to the costs for these companies."

Economists said the big jump in inflation was also due to the ONS's decision to revert to collection prices for services that were not available during the lockdown, and inflation will come back down again in the coming year.

ING's James Smith said, "The combination of VAT changes and the Eat Out to Help Out program means we expect a major downward trend in August, while the rise in unemployment means domestically generated inflation will remain subdued. & # 39;

Rail commuters must wager up to £ 80 on their annual pass

Rail commuters are facing a 1.6 percent increase in season ticket prices despite encouraging people to return to work.

The cap on the annual increase in most regulated tariffs is related to the July retail price index (RPI) measure of inflation, announced by the Office of National Statistics on Wednesday.

Rail fares are usually increased every January, although it is speculated that ministers are considering delaying the increase in 2021 due to low passenger numbers.

The UK, Scottish and Welsh governments are regulating increases for around half of fares, including season tickets on most commuter routes, some round-trip off-peak tickets for long-distance travel and tickets for travel in major cities at any time.

The Rail and Road Office's rail regulator announced that regulated tariffs rose an average of 2.7 percent in January 2020, after the RPI was 2.8 percent in July 2019.

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