The July inflation figures were a little disappointing, consumer price inflation rising to 2.6% in July from 2.4% in June, while RPI inflation increased more sharply, from 2.8% to 3.2%. After three successive months in which inflation surprised on the downside, this broke the pattern.
We should not be too downhearted. The main reason inflation rose was because prices fell faster a year ago, particularly clothing and footwear, where bad weather brought the summer sales forward this year. Clothing and footwear prices still fell in July, 2.6%, but not as much as in July 2011.
Even so, the consumer prices index only rose by 0.1% between June and July and has increased by just 0.7% since December. Not much inflation there. More here.