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UK inflation ticks down, damping rate hike hopes

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Inflation in the U.K. inflation fell by 0.2 percent in July, down from a flat reading in June, according to data released Tuesday by the Office of National Statistics.

The country's consumer price index did rise by 0.1 percent year on year, however, which was higher than a Reuters poll for a 0.0 percent change.

The data is unlikely to heighten any expectations of an interest rate rise from the Bank of England (BoE), which has set an inflation target of 2 percent.

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In its latest economic outlook, the BoE predicted that the U.K.'s rate of inflation will not reach its 2 percent target again until the third quarter of 2017.

Low oil, food and imported goods prices account for much of the drag on inflation, according to the bank's governor Mark Carney.

The U.K.'s key lending rate has sat at a record low of 0.5% for nearly six years.

However, there is still a glimmer of hope for BoE hawks, as at least one member of the monetary policy committee broke the mold calling for a 0.25 percent hike in the 8-1 which ultimately kept rates steady.

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