Rate of inflation rises unexpectedly

Both measures of inflation rose unexpectedly in July causing concern for savers, people on fixed incomes and rail passengers. The Consumer Prices Index (CPI) rose from 2.4% in June to 2.6% in July. The Retail Prices Index (RPI), which includes housing costs, rose by a larger amount, from 2.8% to 3.2%. The increases in both rates of inflation were partly down to higher air fares, which rose by 21.7% compared to last month. A lower than usual drop in clothing prices, due to many summer sales being moved forward, also contributed as did rise in housing costs. The figures from the Office for ...