LONDON (Reuters) -British consumer price inflation rose to 10.1% in July, its highest since February 1982, up from an annual rate of 9.4% in June, as the squeeze on households intensifies, official figures showed on Wednesday.
The increase was above economists’ expectations in a Reuters poll for inflation to rise to 9.8% in July, and will do nothing to ease the Bank of England’s concerns that price pressures may become entrenched.
Earlier this month the BoE raised its key interest rate by 0.5% to 1.75% – its first half-point rise since 1995 – and it forecast inflation would peak at 13.3% in October, when regulated household energy prices are next due to rise.
(Reporting by David Milliken and William Schomberg; editing by William James)
