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Unexpected rise in inflation

Unexpected rise in inflation
There was an unexpected rise in inflation last month, as air fares increased and clothing and footwear stores ended summer sales.

The Consumer Prices Index rate stood at 2.6% in July, up 0.2% on the month before, the Office for National Statistics revealed.

The alternative Retail Prices Index rose from 2.9% in June to 3.2% in July.

Labour's Rachel Reeves said the "disappointing" rise would put “more pressure” on ordinary families, as she urged ministers to cut VAT and put money in the pockets of consumers.

“Fewer jobs, stagnating wages and you’ve got rising prices and all of that is putting immense pressure on families at a time when also benefits have been cut and taxes for ordinary families are going up as well," the Shadow Chief Secretary to the Treasury said.

“This is more pressure on ordinary families who are struggling to make ends meet at the moment.”

Meanwhile, the June 2012 House Price Index shows no change in average UK house prices compared to last year, but a 2.8% rise in England, and a 6.5% increase in London.

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