Inflation as measured by the Retail Prices Index (RPI) picked up to 1.9% in July, from the previous month’s rate of 1.6%.
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As the Government gears up for an announcement on train fares, new analysis suggests that ticket prices have increased at double the speed of wages since 2010.
Trader Dennis de Jong at UFX said the United Kingdom inflation data will be one of the most scrutinised releases over the course of the coming year, as observers try to understand the economic impact of Brexit.
As fares for passengers rise, dividends paid to shareholders of private train companies have risen by 21 per cent in the previous year to £222 million, said the unions.
The Consumer Price Index for June rose to a higher-than-expected 0.5%, with rising air fares and petrol prices both contributing to an overall increase in the cost of living.
The TUC says passengers are paying more and getting even less – with unstaffed stations and overcrowded trains amounting to an increasingly poor service for commuters.
Chris Hare, of Investec Securities, said: ‘The June surge in air fares will not be repeated and will unwind in the annual calculation.
The outcome resulted in a slump in the pound – which will make the price of imported goods bought in dollars and euros more expensive and could therefore push up their prices.
Today’s CPI data comes amid a gloomy outlook for the economy in the aftermath of June’s European Union referendum.
Earlier this month, the Bank of England’s Monetary Policy Committee cut United Kingdom interest rates for the first time since 2009, from 0.5 per cent to 0.25 per cent.
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Britain will avoid recession, according to the Bank, but it warned over a “material slowdown”, higher unemployment and falling house prices over the next year.
