UK inflation rises to 2.1%

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 had been for the Consumer Prices Index (CPI) to slip to 1.9%, from 2% in June. However, a number of "quirky" factors drove CPI above target for the first time since April, according to ING developed market economist James Smith. "The prices of games and toys rose by a massive 8.4% in month-on-month terms, the biggest such rise since the series began in the 1980s," noted Smith. "Accommoda...