UK inflation jumps on virus fallout

London: Inflation in Britain rose to its highest level in four months in July, fuelled by rebounding oil prices and businesses passing on the costs of the coronavirus pandemic, data showed on Wednesday.

The annual inflation rate, as measured by the UK´s Consumer Prices Index, rose to 1.0 percent in July from 0.6 percent in June, the Office for National Statistics said in a statement.

It is the highest level since March and comes after inflation slowed to a four-year low of 0.5 percent in May when Britain was in coronavirus lockdown.

Volatility is expected to continue with analysts predicting a large slowdown in inflation in August after the government recently cut tax for the hospitality and tourism sectors.