Annual inflation rate in the UK jumped to 1% in July of 2020 from 0.6% in June, beating market forecasts of 0.6%. It is the highest reading since March, as the restrictions caused by the coronavirus pandemic have been eased.
The largest contributions came clothing (-0.1% vs -2.2%), rising prices at the petrol pump (transportation prices were down 0.7% vs -1.6% in June), and furniture and household goods (0.8% vs -0.5%), namely single beds and bath sheets.
In contrast, food inflation slowed (0.8% vs 1.1%), mainly due to fruit, vegetables (including potatoes and tubers), fish, meat, and milk, cheese and eggs.
On a monthly basis, consumer prices went up 0.4%, after a 0.1% rise and beating forecasts of a 0.1% fall.