Oil prices rose sharply. The summer sales for clothing, footwear and household goods were less generous than they were a year ago. Activity across the economy has started to recover. As Britain begins to return to normal, it should come as no surprise that the annual inflation rate has ticked up to 1%.
In truth, it is a bit more complicated than that. The UK does not have an inflation problem and is unlikely to have one for some time. July’s official cost-of-living data was a one-off: the next move will be sharply down.
That will come too late, of course, for rail travellers, who will be clobbered with a 1.6% fare increase in January because the government insists on using the July retail prices index – a gauge of inflation considered flawed by the Office for National Statistics – to calculate the annual fare increase.