UK inflation rose to 2.5 percent in July, marking the first increase since November.
The Office for National Statistics (ONS) said that the Consumer Priced Index rose by 2.4 per cent year on year in June, in line with analyst expectations.
After holding steady for the start of 2018, July’s figures reveal that UK inflation rose once again.
However, the Retail Prices Index (RPI) measure of inflation fell to 3.2 percent.
This figures is used by the Department for Transport uses the measure to set the annual maximum increase for rail fares.
Wednesday’s figures show that increases in computer games and transport were slightly mitigated by a fall in the price of clothing.
Inflation was particularly impacted by rises in oil prices, which rose more than 50 percent across the period.
Commenting the figures, Ed Monk, Associate Director for Personal Investing at Fidelity International, said:
“Only four months ago we were celebrating the first increase in real wages for a year, yet sadly the party has been all too brief. With inflation creeping up to 2.5% and yesterday’s data showing a dip in wage growth, UK workers must once again stand by and watch their income diminish in real terms.”
Moreover, Mr Monk emphasised that adverse impact on savers of the Bank of England’s move to raise interest rates.
He added:
“To make matters worse for households, the Bank of England’s decision to raise interest rates this month will already be hitting the pockets of millions through increased mortgage rates, while at the same time, many banks have yet to pass the rate hike onto savers.”
