Skip to content
Subscriber Only
Business
Pursuits

U.K. Inflation Quickens as Core Rate Rises to 5-Month High

Video player cover image

U.K. Inflation Turns Positive

Updated on

Britain’s inflation rate unexpectedly rose in July and a core measure of price growth increased to the highest in five months. The pound jumped.

The change in the headline reading to 0.1 percent from zero was mainly driven by smaller clothing discounts in the summer sales this year compared with a year earlier. Economists in a Bloomberg survey had forecast the rate would stay at zero. The core measure -- which excludes volatile food and energy costs -- increased to 1.2 percent from 0.8 percent, higher than the 0.9 percent reading predicted by economists.