THE GUARDIAN: Fuel and air fares also pushed up annual July rate, making interest rate cuts less likely this year
UK inflation rose again last month to a higher-than-expected 3.8% amid higher food prices and travel costs, adding to fears that the Bank of England will delay further interest rate cuts.
Figures showed the annual rate as measured by the consumer prices index climbed from June’s 3.6% reading, sitting above the central bank’s 2% target for the 10th consecutive month.
That overshot financial market forecasts of a 3.7% figure for July and makes another reduction in the cost of borrowing this year unlikely, with financial markets not fully pricing in the chance of a fresh quarter-point cut until next spring.
The data also suggests rail fares are likely to rise by 5.8% next year. Increases in regulated train ticket prices are usually calculated by adding one percentage point to July’s inflation reading as measured by the retail prices index, which was 4.8%. » | Phillip Inman | Wednesday, August 20, 2025
The Bank of England shouldn’t have lowered the interest rate in early part of this month. The people who work in the Bank are far too eager to lower interest rates. Cheap money is NOT a good policy. — © Mark Alexander
