UK Inflation Jumped in June

Britain’s inflation rate unexpectedly jumped last month, to its highest level since March, as clothing stores refrained from the usual summer cuts after reopening their doors following general isolation measures due to the Coronavirus, but most economists expect it to return soon.

The Office for National Statistics said the annual consumer price inflation rate rose to 1% in July from 0.6% in June, more than all forecasts in a Reuters poll of economists’ opinions.

Most experts expect the increase to be temporary.

The bureau stated that the prices of clothes and shoes were the largest contributor to the high rate of inflation.

A gauge of core inflation that excludes traditionally receptive energy, fuel, alcohol and tobacco prices rose to a year high of 1.8% from 1.4% in June, against expectations of a limited decline.