British inflation surpassed the Bank of England's 2% target in July, unexpectedly. Annual consumer inflation jumped 2.1% in July from 2% in June.
Bank of England estimates earlier this month that consumer price inflation plunged to a three-year low below 1.9%, reflecting lower oil prices.
The rise in this index is contrast to the sharp decline in the value of Sterling, which came from Boris Johnson's election as prime minister last month. He spoke of Britain's definitive exit from the European Union - even without agreement - on October 31.
Unlike the major currencies, the Sterling fell 2.4% in July, and this month the pound fell to its lowest level since October 2016.There was little immediate market reaction to inflation reports, and Brexit is in the spotlight.
According to experts, inflation is close to the bank's target, but continued pressure on the pound could raise it.