LONDON (AP) — The inflation rate in Britain has picked up, keeping a squeeze on households facing the uncertainty of Brexit.
Official figures released Wednesday show that consumer prices were up 2.5 percent annually in July, up from June's 2.4 percent rate. That remains above the Bank of England's target of 2 percent and helps justify the central bank decision earlier this month to raise interest rates for only the second time since the global financial crisis.
The rise in inflation will limit an increase in real wages, keeping pressure on household spending in the crucial last months of Brexit negotiations. The talks for Britain to leave the European Union have stalled and there are concerns the country could crash out without a deal on future relations, hurting commerce and the wider economy.