BBC:英国7月通货膨胀4.4%

Enoch

[BBC 英文新闻 8月12日]

http://news.bbc.co.uk/1/hi/business/7555788.stm

UK inflation up to 4.4% in July
Supermarket fruit and veg section
Rising food prices are pushing inflation higher

The UK's annual rate of inflation rose to 4.4% in July, up from 3.8% in June and more than twice the government's 2% target, official figures have shown.

The rise in the Consumer Prices Index (CPI) was more than expected, with food prices up a record 13.7% on the year.

High petrol prices also helped to push up inflation as the data was collected before the recent drop in oil prices.

Inflation as measured by the Retail Prices Index (RPI) - often used in pay negotiations - rose to 5% from 4.6%.

Rates question

The latest figures are set to make the next interest rate decision by the Bank of England's Monetary Policy Committee even tougher, with the Bank having to cope with accelerating inflation and a slowing economy.

"It is very disappointing data with widespread signs of higher price pressures," said Philip Shaw, Investec chief economist.

"It will undoubtedly convince some members of the Monetary Policy Committee to vote for higher rates but we doubt they will reach a majority."

While prices are still on the increase for consumers, economic activity is slowing in all key sectors of the economy, business confidence is waning and falling house prices and tight credit conditions have dented consumer spending.

At the weekend, the CBI warned the UK could only expect the economy to stagnate in coming quarters, while the IMF has cut its growth forecasts.

The jump in inflation from 3.8% to 4.4% was the biggest monthly change in the annual CPI rate since records began in January 1997.

Inflation drivers

Food prices soared by a record 13.7% over the year mainly as a result of surging meat prices - particularly bacon, pork and poultry.

At the same point last year the price of food and non-alcoholic beverages had fallen.

Looking ahead, CPI inflation is expected to rise even higher as recent utility price rises take effect. The International Monetary Fund predicts inflation could hit 5% in the near future.

Other surveys have signalled that price pressures remained last month, with the latest ONS data showing that factory gate prices rose 10.2% during the year to July.