As treasurer, Bill Hayden set Labor on the path to economic rationalism 
What central banks are doing to safeguard financial stability and why they must proceed with caution 
What early 2024 polls are revealing about voters of color and the GOP 
The UK has become the world’s fourth largest exporter, but can it maintain this momentum? 
High interest rates aren’t going away anytime soon – a business economist explains why 
Will the RBA raise rates again? Unless prices surge over summer, it's looking less likely 
Flavoured vapes may produce many harmful chemicals when e-liquids are heated – new research 
How is China being taught at Australian universities? 
Why you should expect to pay more tourist taxes – even though the evidence for them is unclear 
What should you do if you can’t pay your rent or mortgage? 
If the RBA’s right, interest rates may not fall for another year. Here’s why. 
Yes, Australia’s big supermarkets have been price gouging 
Why the Bank of England is now more upbeat than the IMF 
Data released by the Office for National Statistics on Tuesday showed that UK annual inflation rate as measured by the Consumer Prices Index (CPI) rose to 0.6 percent in July from 0.5 percent in June, beating expectations at 0.5 percent. The core inflation gauge (excluding energy, food, alcohol and tobacco) eased a bit to 1.3 percent in July versus 1.4 percent last, in line with expectations.
Today’s inflation report is the first official government data that covers the period after the EU referendum. There was no obvious impact from Brexit on today’s consumer price data, but it’s probably too early to spot signs of Brexit damage. It will be some time before the full effect of the fall in sterling following the Brexit vote feeds into the headline inflation rate. A weaker pound will cause inflation to rise more sharply in the coming months.
The pound is down by more than 12 percent since the EU referendum and almost 19 percent since its 2015 peak. Fall in the value of the pound had increased the cost of imports for manufacturers. Input prices faced by manufacturers rose 4.3 percent in the year to July, compared with a fall of 0.5 percent in the year to June. The cost of imported food materials rose 10.2 percent, and the price of imported metals rose 12.4 percent.
"There is no obvious impact on today's consumer prices figures following the EU referendum result, though the Producer Prices Index (PPI) suggests the fall in the exchange rate is beginning to push up import price faced by manufacturers," said Mike Prestwood, head of prices at the ONS.
Higher inflation will make it harder for the Bank of England to cut interest rates any further. The previously statically low headline inflation reading is now beginning to bounce higher in the first real set of data following the EU referendum vote. Joshua Mahony, of IG says "Inflation data doesn’t yet move the dial for the Bank of England’s monetary policy makers, who have arguably shifted their focus to growth and jobs in the wake of the referendum result."
The pound rallied after inflation rose faster than expected. The pound has gained almost one cent against the US dollar since the inflation report was released, to $1.2993. It has also recovered from three-year low against the euro, and was trading at €1.1506 at around 11:00 GMT, up from €1.1464 earlier.
