Record inflation in UK

Record inflation in UK

The UK consumer price index (CPI) gained momentum in July as oil prices continued to set new records. The UK National Statistics Office disclosed that the country's consumer prices rose from 2 percent in June to 2.3 percent in July, breaching the central bank's target for the first time since 1998. Oil prices contributed a 0.13 percent rise to the consumer prices. In addition, air and sea transportation prices played an important role in the inflation. On the other hand, food prices caused a downward trend in consumer prices. The higher-than-expected inflation took the pound up and dashed hopes that the Bank of England will lower interest rates further. The Bank of England cut interest rates for the first in two years this month, by a quarter-percentage point to 4.5 percent, as growth slowed in the world's fourth-largest economy.