Inflation in the UK measured by the Consumer Price Index (CPI) rose from zero in June to a rate of 0.1% in July, according to the Office of National Statistics (ONS).
CPI has remained near zero for the last six months, with April seeing the first negative inflation in the UK for half a century.
The small rise in July was a result of lower food and drink prices offset by a small rise in the price of clothing.
Excluding energy, food, alcohol, and tobacco, the underlying Core CPI rate rose to a five month high of 1.2%.
The Retail Price Index (RPI), the inflation rate used to determine rail fare increases, remained unchanged at 1% for the same period.
Discussing the effect of today’s statistics, Fawad Razaqzada, Technical Analyst at CityIndex, said that the small change in CPI is “unlikely to have a material impact on the Bank of England’s decision to alter monetary policy”. He also warned that inflation could fall back because “oil prices are continuing to head south due to excessive supply” and the “deflationary force” of China’s decision to sharply devalue its currency last week.
