UK DATA: Jul CPI unch. m/m; +4.4% y/y vs Jun 4.2% y/y; above median
–Jul core CPI unch. m/m; +3.1% y/y vs Jun 2.8% y/y; above median
–Jul RPI -0.2% m/m; +5% y/y; Jul RPIX -0.3% m/m; 5% y/y
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Consumer prices were unchanged on the month in July but inflation
rose to 4.4% from 4.2% in June. Analysts had expected to see a fall of
0.2% on the month and 4.3% on the year. The rise in inflation between
June and July was mainly due to a rise in the cost of miscellaneous
goods and services which were up 0.5% on the month this year, compared
with a fall of 0.3% in July last year. This added nearly 0.1 percentage
point to the change in Inflation between June and July and was mainly
due to increased fees for arranging mortgages. BOE’s King to write
letter to Osborne to explain why the BOE has missed the 2% target again.
Letter to be published at 1030GMT.