British consumer price inflation increased for the first time this year in July, official figures showed on Wednesday, but the rise was smaller than expected as services prices - closely watched by the Bank of England - rose much less sharply.
The annual rate of consumer price inflation increased to 2.2% after two months at the Bank of England's 2% target, the Office for National Statistics said, slightly less than the median 2.3% forecast in a Reuters poll of economists.
Sterling fell sharply against the U.S. dollar after the data was published on Wednesday and financial markets priced in a 47% chance of a quarter-point BoE rate cut in September, up from 36% before the data was released.
When the BoE cut interest rates from a 16-year high of 5.25% at the start of this month, it said May and June's 2% inflation readings probably marked a low point for inflation.
Reuters
British consumer price inflation increased for the first time this year in July, official figures showed on Wednesday, but the rise was smaller than expected as services prices - closely watched by the Bank of England - rose much less sharply.
The annual rate of consumer price inflation increased to 2.2% after two months at the Bank of England's 2% target, the Office for National Statistics said, slightly less than the median 2.3% forecast in a Reuters poll of economists.
Sterling fell sharply against the U.S. dollar after the data was published on Wednesday and financial markets priced in a 47% chance of a quarter-point BoE rate cut in September, up from 36% before the data was released.
When the BoE cut interest rates from a 16-year high of 5.25% at the start of this month, it said May and June's 2% inflation readings probably marked a low point for inflation.
Reuters
British consumer price inflation increased for the first time this year in July, official figures showed on Wednesday, but the rise was smaller than expected as services prices - closely watched by the Bank of England - rose much less sharply.
The annual rate of consumer price inflation increased to 2.2% after two months at the Bank of England's 2% target, the Office for National Statistics said, slightly less than the median 2.3% forecast in a Reuters poll of economists.
Sterling fell sharply against the U.S. dollar after the data was published on Wednesday and financial markets priced in a 47% chance of a quarter-point BoE rate cut in September, up from 36% before the data was released.
When the BoE cut interest rates from a 16-year high of 5.25% at the start of this month, it said May and June's 2% inflation readings probably marked a low point for inflation.
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