UK inflation rises to 3.8 pct in July

LONDON, Aug 20 (KUNA) -- Inflation in the United Kingdom rose to 3.8 percent in July, according to data released on Wednesday by the Office for National Statistics.
This marked an increase from 3.6 percent in June, driven mainly by higher costs in the transportation sector, noting that air travel prices in particular jumped from 1.7 percent in June to 3.2 percent in July, making it the strongest contributor to the overall rise.
The report also highlighted an increase in the cost of food and non-alcoholic beverages, which climbed from 4.5 percent to 4.9 percent, and communications costs recorded a sharper rise, reaching 6.1 percent in July compared with 4.9 percent in June. Similarly, hotel and restaurant prices advanced from 2.6 percent to 3.4 percent over the same period.
Some categories showed declines, household services fell from 6.7 percent in June to 6.2 percent in July, while clothing prices slipped by 0.2 percent, dropping from 0.5 percent to 0.3 percent.
The Bank of England recently cautioned that inflationary pressures continue to weigh heavily on the UK economy.
In its report earlier this month, the bank reaffirmed its cautious approach to adjusting interest rates, stressing that keeping inflation under control remains essential.
The bank considers 2 percent an ideal inflation rate to support economic growth while protecting household incomes and spending power. (end) mrn.ahm