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UK Inflation Rises Unexpectedly In July

UK consumer price inflation accelerated unexpected in July, exceeding the central bank's 2 percent target, data from the Office for National Statistics revealed Wednesday.

Consumer prices climbed 2.1 percent year-on-year in July, faster than the 2 percent increase in June. Inflation was forecast to slow to 1.9 percent.

On a monthly basis, consumer prices remained flat, while prices were expected to drop 0.1 percent.

Another report from ONS showed that output price inflation climbed to 1.8 percent from 1.6 percent in June. The rate was larger than the expected 1.7 percent. The annual rate has remained positive since July 2016.

On a monthly basis, output prices gained 0.3 percent compared to a forecast of 0.1 percent rise. Prices had dropped 0.1 percent in June.

At the same time, input price inflation rose to 1.3 percent from 0.3 percent in June. Economists had forecast prices to rise again by 0.3 percent.

On month, input prices advanced 0.9 percent, offsetting June's 0.8 percent fall.

In a separate communique, the ONS said average house prices increased 0.9 percent year-on-year in June, the same rate as seen in May.

The lowest annual growth was in London, where prices fell 2.7 percent from last year.

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