UK inflation rises by more than expected to 3.8% amid higher food prices | Inflation

The inflation rose again last month, rose to 3.8%from expected in the midst of higher food and fuel prices, and feared that the Bank of England would delay more interest rates.

The figures increased by 3.6% of the annual ratio measured by the Consumer Price Index (CPI), and the Central Bank’s Central Bank was over 2% target for the 10th month.

This exceeds the financial market forecasts of a 3.7% figure for July and eliminates the likelihood of a further reduction in borrowing costs this year.

The UK Bank increased its interest rates to 4% at the beginning of this month in line with inflation projections in the next two years. However, a few MPC members voted to have interest rates until they became clearer, and will force the timing of future deductions of July in CPI more to 2026.

Companies blamed employment tax increases, and uncertainty caused Donald Trump’s tariff war in domestic prices, while droughts in Spain increased food costs.

Energy Consultancy Cornwall Insight, domestic electricity and gas energy price in October will increase 17% or 1% and will contribute to domestic fuel costs, he said.

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