Surprise rise in inflation, official figures show

Prices in the UK rose even faster than expected last month, reaching the highest level in more than 18 months, according to official figures.

Inflation hit 3.8% in July, data from the Office for National Statistics showed.

Not since December 2023 have prices risen as fast.

It's up from 3.6% in June and is forecast to reach 4% by the end of the year.

Economists polled by Reuters had only been expecting a 3.6% rise.

Another measure of inflation that's closely watched by rate setters at the Bank of England rose above expectations.

Core inflation - which measures price rises without volatile food and energy costs - rose to 3.8%.

It's not good news for interest rates and for anyone looking to refix their mortgage.

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