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The UK’s inflation rate as measured by the Consumer Prices Index (CPI) rose to 0.6% in July from 0.5% in June, data from the Office for National Statistics (ONS) has revealed.
The ONS stated that although the rise is ‘still relatively low in the historic context’, the July inflation rate is the highest since November 2014.
Escalating fuel prices contributed to the rate rise, the data suggested.
Higher hotel and restaurant bills and expensive alcoholic beverages also helped to increase the rate.
Economists had warned of rising prices in the coming months as consequences of the weaker pound following the Brexit vote take effect.
Meanwhile, the Retail Prices Index (RPI) measure of inflation rose to 1.9% in July, up from 1.6% in June.
Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), commented:
"Higher inflation squeezes consumer spending and increases cost pressures on businesses. The Bank of England has largely exhausted the monetary policy tools available. The Government must use the Autumn Statement to stimulate economic growth, providing greater support for businesses looking to invest."