Driver Filling Fuel Tank ca. 1994

The UK Consumer Prices Index (CPI) reached 2.5% in July, the first move higher since November 2017.

Figures from the Office of National Statistics (ONS) showed transport costs, particularly the price of fuel, and the increased prices of computer games were among the main drivers pushing inflation higher. The move upwards, suggests the Bank of England’s rate hike earlier this month was justified.

Elsewhere, UK unemployment figures fell to 4% in the second quarter. And while wage growth in the form of real average weekly earnings (AWE), excluding bonuses slipped in Q2-down 0.1 percentage points from the three months to may-overall wage growth of 2.7% remains above inflation for now.