"Although the uptick [in inflation] is unwelcome, it is not likely to unduly concern the Monetary Policy Committee or dissuade it from further action"
- Andrew Smith, chief economist at KPMG
U.K. inflation accelerated in July, official data showed on Tuesday. An index measuring consumer prices rose at an annualized rate of 2.6 per cent, compared with an increase of 2.4 per cent in June, said the Office for National Statistics.
"Although the uptick is unwelcome, it is not likely to unduly concern the Monetary Policy Committee or dissuade it from further action," said KPMG chief economist Andrew Smith.
"While the economy remains moribund, expect another round of quantitative easing when the current tranche is completed in November."
U.K. stocks ended a loosing streak on Tuesday. The FTSE 100 Index advanced 0.56 per cent, or 32.90 points to 5,864.78. The broader FTSE All-Share Index gained 0.58 per cent.
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