Inflation

UK Inflation Rises After Fall

Rise attributed to increased air fares and and a fall in the number of discount shops.

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A sharp rise in air fares and less discounting at clothes shops pushed upinflation in the UK to 2.6% last month, intensifying the squeeze on household budgets.

City economists had forecast an easing in consumer price inflation but instead the annual rate rose from 2.4% in June, the first rise since March.

There was bad news for rail commuters, with fares now set to go up by 6.2% in January, pushing many season tickets above £5,000 for commuters in south-east England. This is because retail price inflation (RPI), a broader measure which includes housing costs, jumped to 3.2% in July from 2.8% in June.