“These figures suggest that the sweet spot for UK inflation has passed as the recent downward pressure on the headline rate from lower energy costs faded away in July.
“This increase signals the start of a period of moderately rising price pressures, with greater demand from a recovering economy and higher energy bills likely to keep inflation above the Bank of England’s 2% target until next year.
“The notable slowdown in services inflation suggests that underlying price pressures are becoming less troublesome. The growing squeeze on wages from a subdued jobs market should help keep it on a firm downward trajectory.
“These figures mean a September rate cut is improbable and will likely lead to a definitive, possibly unanimous, vote among rate setters in favour of keep interest rates on hold.”
ENDS
Notes to editors:
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