Consumer prices in the U.K. saw their largest rise in July since November 2014, amid warnings that the country's vote to leave the EU could stoke inflation.
Consumer price inflation dropped 0.1 percent in July, according to official data, but saw a 0.6 percent rise compared to the same period last year, This was above analyst expectations for a 0.5 percent rise. Commuters will have to pay 1.9 percent more for rail fares from January, in line with the 1.9 percent retail price inflation reported on Tuesday.
The impact of the U.K. pound's post-referendum is already being felt, with petrol and food prices, which are more sensitive to currency movements, showing some of the strongest inflation rates.
"The U.K.'s strongly consumer-driven economic recovery is about to grind to a halt," Scott Corfe, director of the Centre for Economics and Business Research, warned in a statement.