By SHANE CROUCHER
"UK inflation rose unexpectedly in July as the Consumer Price Index (CPI) came in at 2.6 percent, casting a shadow over the Bank of England's forecast that it will reach the government's two percent target by around the end of the year.
"Rising air fares sent inflation up on June's figure of 2.4 percent, reported the Office for National Statistics (ONS), while slowing price drops from continued discounting of clothing and footwear goods failed to provide the same off-setting inflation counterweight as in previous months.
"July's unexpected rise in UK inflation is disappointing, but it is likely to be just a temporary blip," said Vicky Redwood, an analyst at Capital Economics.
"Admittedly, the near-term outlook for inflation has worsened slightly on the back of the renewed rise in petrol prices and the rise in agricultural prices. ..."