UK annual consumer inflation rate rises to 2.2%, below forecasts

By Tuba Ongun

The annual consumer inflation rate in the UK rose to 2.2% in July, below market estimates of 2.3%, according to data released on Wednesday.

The figure accelerated from 2% in June, the Office for National Statistics said.

The largest upward contribution to the headline inflation came from housing and household services as its prices fell less than they did in the prior month, down 1.5% year-on-year in July versus 4.7% in June.

Prices of restaurants and hotels, on the other hand, rose at a slower pace by 4.9% in July following a 6.2% annual hike in the prior month.

The core inflation, stripping out energy, food, alcohol and tobacco, eased to 3.3% in July, from 3.5% in June.

On a monthly basis, Consumer Prices Inflation fell by 0.2% in July.