UK inflation rises by more than expected to 3.8% amid higher food prices

Annual July rate all but rules out possibility of a further Bank of England interest rate cut this year

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Inflation rose again last month to a higher than expected 3.8% amid higher food and fuel prices, adding to fears that the Bank of England will delay further interest rate cuts.

Figures showed the annual rate as measured by the consumer price index (CPI) climbed from June’s 3.6% reading, sitting above the central bank’s 2% target for the 10th consecutive month.

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