UK inflation rate set to accelerate to 2.7% for July

Inflation is expected to have accelerated when official figures are released tomorrow.

The Consumer Price Index (CPI) measure of inflation is forecast to hit 2.7 per cent for July, up from 2.6 per cent in June.

The move would mark a bounce-back in the cost of living following June’s slowdown, but would fall short of the near four-year high of 2.9 per cent recorded in May.

It has also emerged that rail fares have increased twice as much as pay since 2010. They increased by 1.9 per cent in January, but the figure for July this year is expected to be around 3.9 per cent. An analysis by the Rail, Maritime and Transport union showed that rail fares have risen by around 32 per cent in eight years, while average weekly earnings have only grown by 16 per cent.