UK inflation sees surprise jump to 2.6%

UK CPI inflation has risen to 2.6% in July, up from 2.4% in June, surprising economists who had expected a fall to 2.3%.

The Office for National Statistics said transport, clothing and footwear drove the increase, which may serve to mute expectations for further stimulus from the Bank of England in the immediate future. RPI rose from 2.8% to 3.2% over the same period, the ONS said, reversing the fall from 3.1% seen last month. The figures come after the price of Brent crude oil hit a three-month high of $115 a barrel yesterday, a sign input costs may be set to rise again. Having been as high as 5.2% last September, CPI inflation came in at 2.4% in June, the lowest level since November 2009's 1.9% fig...