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The Independent UK
The Independent UK
Business
Ben Chu

Inflation rises in wake of Brexit vote

Consumer price inflation picked up in the wake of the UK’s Brexit vote to its highest level since November 2014.

The annual rate of CPI hit 0.6 per cent, up from 0.5 per cent in June and higher than City of London analysts had been expecting.

The separate Producer Price Index (PPI) rose at an annual rate of 0.3 per cent, the biggest rise since June 2014, and following a 0.2 per cent fall in the previous month, reported the ONS. 

This suggests that the fall in sterling since the referendum vote is beginning to push up import prices, which should eventually feed through into consumer prices.

Analysts had expected the PPI to be flat year on year.

The ONS said the main drivers of the increase in the consumer price rate increase were rising motor fuel prices, alcoholic drinks and accommodation services.

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