Share Prices & Company Research

Press Release

15 August 2018

Travel costs drive inflation up to 2.5%

Consumer price inflation rose to 2.5% last month, increasing for the first time since November 2017.

Joel Dungate, Investment Analyst, said: “While we saw a rise in inflation in July to 2.5%, the figure was in line with forecasts so won’t cause any major alarm. The small rise also supports the Bank of England’s decision to slightly tighten its monetary policy last month, when it raised interest rates to 0.75%.

“Motorists probably felt the pinch the most as prices at the pump drove the increase. On the other hand, rail travellers will be relieved to see that July’s inflation figure as measured by the Retail Price Index, which is used by the Department for Transport in setting rail fares, fell to 3.2% from 3.4% in June. Nevertheless, many long-distance commuters are still likely to see the annual cost of getting to work rise by over £100.”

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Travel costs drive inflation up to 2.5%
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