British Inflation Unexpectedly Holds Steady In July

Official figures show that consumer price inflation in Britain held steady in July at an annual rate of 2.6 percent.

The reading from the Office for National Statistics was slightly better than anticipated. The consensus of economists was a modest uptick to 2.7 percent.

Still, Tuesday’s figure keeps inflation above the Bank of England’s target of 2 percent, which has stoked speculation that interest rates may rise in coming months.

Inflation in Britain has risen sharply over the past year since the country voted to leave the European Union, a decision that prompted a big drop in the value of the pound, which raised the price of imported goods.

Inflation also continues to outstrip wage increases, meaning living standards continue to fall.