The UK consumer prices rose at an annual rate of 2.6% in July, rising more than market consensus. The largest upward pressures on the change in the CPI rate came from transport (particularly air fares) and clothing & footwear. The Retail Prices Index (RPI) annual inflation stands at 3.2% in July 2012, up from 2.8 per cent in June. The largest upward pressures on he change in the RPI rate came from the purchase of cars, airfares, clothing & footwear and housing. The only significant downward pressure came from household goods. While the current data indicates a small drift higher for the CPI, the overall trend remains moderating. The CPI had witnessed a growth rate of consistently around 3.5% for the first four months of the year before breaking the trajectory. The CPI grew by 2.4% in last month- its lowest rise in two and half years.
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