UK inflation rises to 0.6% in July; Economists predict jump to 3% in 2017

Sterling jumps 0.8%

Sterling has moved 0.8% higher as the UK's rate of inflation rose to 0.6% in July, up from the 0.5% reported in June, figures from the Office for National Statistics (ONS) revealed this morning.

The UK Consumer Price Index (CPI) rose by 0.6% for the year to July 2016, the highest level since November 2014, continuing its upwards trend after rising 0.5% in June, and 0.3% reported in May. Kames' Roberts: The world faces a headline inflation problem The ONS said the main contributors to the increase in the rate were rising prices for motor fuels, alcoholic beverages and accommodation services, and a smaller fall in food prices than a year ago. Downward pressures came from falls in social housing rent, and falling prices for certain games and toys. Fidelity fixed income CIO...