UK inflation jumps much more than expected in July

British inflation shot up in July to more than twice the central bank's 2% target as food prices rocketed, official data showed on Tuesday which will douse expectations of any near-term interest rate cuts.
The Office for National Statistics said consumer prices were unchanged last month, which took the annual rate of inflation up 0.6%age points to 4.4%.
That was the both the biggest jump and the highest rate since the series began in 1997. Analysts had predicted a rise to 4.1%.
Bank of England policymakers had seen these figures at their rate-setting meeting last week and their new quarterly forecasts due on Wednesday are almost certain to show a much higher near-term inflation profile.
The chief culprit was soaring food prices, up a record 13.7% on the year as the cost of meat — particularly bacon, ham and poultry — has risen sharply. Bread and cereal prices also shot up. Overall, food and non-alcoholic beverages added 0.28%age points to the annual CPI rate.
Higher petrol prices also played their part in lifting inflation as the figures were collected before much of the recent sharp slide in oil prices.
Worryingly for policymakers concerned about second-round effects, RPI inflation on which many wage deals are based shot up to 5%.