Unexpected rise in inflation in Britain

British inflation rose unexpectedly in July, boosted by clothing and footwear prices after retailers enjoyed bumper sales in the month before, according to the official statistics from the British Office for National Statistics.

Retail prices excluding the cost of home loans, fell by 0.1% in July bringing the annual rate up to 2.9% from 2.8%. Analysts had forecast a small decline in the annual rate.