Annual inflation in the U.K. accelerated in July, suggesting inflationary pressures persist in its economy despite disappointing wage growth.
Consumer prices rose 2.5% on the year in July, the Office for National Statistics said Wednesday, up from a 2.4% annual gain the previous month.
The pickup in inflation was driven by price increases for gasoline, food and video games, the ONS said.
Major central banks are slowly stepping back from the easy-money policies of the past decade as accelerating growth revives long-dormant inflation.
The BOE raised its benchmark interest rate to 0.75% in August, its highest level since 2009, and officials telegraphed two or three more increases in the coming years.
In the U.S., the Federal Reserve is expected to lift short-term interest rates again next month, while in Europe, the European Central Bank has signaled it expects to wind down its bond-buying program later this year.
There were further signs of inflationary pressures in U.K. wholesale prices in July. Prices charged by companies at the factory gate rose 3.1% on the year, while the cost of firms’ raw materials surged 10.9%, the fastest rate of input-price inflation in more than a year. Crude oil prices in July were more than 50% higher than a year earlier, figures showed.
The prospect of a full-blown trade war between the U.S. and its major trading partners has sparked fears of rising prices for both companies and consumers. Still, U.K. statisticians said Wednesday that there are few signs yet that initial skirmishes in the form of tit-for-tat tariffs on certain products are driving up prices.