U.K. Inflation Rate Rises to 4.4% in July

U.K. inflation rate accelerated to 4.4% in July from 4.2% in June, forcing Bank of England Governor Mervyn King to write the third letter this year explaining why the rate is above the bank's target over the last three months.

The main upward pressures to annual inflation came from financial services, clothing & footwear, furniture, household equipment & maintenance and housing rent. The main downward pressure to annual inflation came from food & non-alcoholic beverages.

The CPI was unchanged between June and July this year compared with a fall of 0.2 per cent a year ago.

Annual inflation as recorded by the retail prices index (RPI) stands at 5.0 per cent in July, unchanged from June.

TradingEconomics.com, UK Office for National Statistics
8/16/2011 10:44:32 AM