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Hot UK inflation not a gamechanger for the Bank of England
UK inflation was undoubtedly hot in July, but as ever, the devil lies in the detail. Services inflation – the bit usually most relevant for the Bank of England – rose to 5% from 4.7%. That was enough to drag core inflation up slightly too. But this was overwhelmingly down to a larger-than-usual rise in airfares. These are particularly volatile in July, depending partly on when the survey date falls relative to the start of school holidays. Interestingly, hotel prices – which many expected to surge amid Oasis’ tour dates – barely increased on the month. These are things the Bank of England can safely ignore. ... (full story)