UK inflation rises to 2.1%

Likely to fall again before year end

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"Looking forward, much will depend on the path of sterling and it is not impossible that we will see weaker GDP data and higher inflation in Q4 and into Q1 2020 if there is no deal," - Smith & Williamson's Thomas Wells
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"Looking forward, much will depend on the path of sterling and it is not impossible that we will see weaker GDP data and higher inflation in Q4 and into Q1 2020 if there is no deal," - Smith & Williamson's Thomas Wells

UK inflation unexpectedly rose above target in July to 2.1%, just 24 hours after wage growth hit an 11-year high of 3.9% and the employment rate reached a fresh record.

The two factors combined mean the Bank of England (BOE) is more likely to raise interest rates in 2020 than cut them, according to economists - unless we see a negative Brexit outcome. Expectations...

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