LONDON, Aug 15 (Reuters) – Britain’s inflation rate picked up for the first time this year in July, leaving many British households still feeling squeezed by prices that are still rising at about the same pace as their salaries.
FILE PHOTO: Shoppers are seen on Oxford Street in London, Britain December 19, 2017. REUTERS/Simon Dawson/File Photo
Official data also underscored the weakness seen in the country’s property market since the 2016 Brexit vote with house prices rising at their slowest pace in almost five years while prices in London fell at their fastest pace since 2009.
Overall consumer price inflation rose an annual rate of 2.5 percent in July after holding at 2.4 percent in each of the previous three months, the Office for National Statistics said, in line with economists’ forecasts in a Reuters poll.
It was the first time since November last year that inflation gained pace in annual terms, showing how slow the recovery in spending power is for many households.
On Tuesday, official data showed average earnings, including bonuses, rose by an annual 2.4 percent in the three months to June, extending a long run of pay increases way below their pre-financial crisis levels.
When the Bank of England raised interest rates for only the second time since crisis earlier this month, it forecast tha