UK Inflation Accelerates To 3.8%

(RTTNews) - UK consumer price inflation accelerated in July on higher transport cost, data from the Office for National Statistics showed on Wednesday.

The consumer price index posted an annual growth of 3.8 percent after rising 3.6 percent in June. Prices were forecast to climb 3.7 percent.

Core inflation that excludes prices of energy, food, alcohol and tobacco, rose to 3.8 percent from 3.7 percent in June.

The largest upward contribution to inflation came from transport, particularly air fares. This was partially offset by a large downward contribution from housing and household services. On a monthly basis, consumer prices rose only 0.1 percent, following June's 0.3 percent gain.