Great Britain’s consumer price index ticked up to 0.6% in July according to the Office of National Statistics, up from 0.5% in June.
Last month’s was the highest rate of annual inflation for UK since November 2014, prompted by the needs of manufacturers to increase prices of oil, metals and other supplies due to weaker pound impacted by the decision to leave EU in June 23.
The Office for National Statistics said that there were double-digit rise in the cost of some goods as imported food rose 10.2% and imported metals went 12.4% higher. Rising fuels an alcohol prices and increasing restaurant and hotel bills, which rose 0.2% and 0.4% respectively, were also main drivers of the July inflation.
According to the economists, the said inflation will likely buoy the Bank of England’s 2% target by the end of 2016 and 3% in May 2017.
The last time the inflation touched a near 3% was in December 2013.
British pound retreated on Tuesday by as much as 1.3% versus its major counterparts after reports of last month’s inflation were released.
Earlier, the sterling stumbled to an intraday low of $1.2872, nearing its post-Brexit lows but manage to spike to an intraday high, closing at $1.3038 against the dollar.
Against the euro, it finished $1.1470 but there is an expectation that it will reach the 1.11435 target.
The pound has closed in bearish territory for nine consecutive trading sessions since the Bank of England lowered the interest rates and announced a bond buying program.