Second-guessing the economy is a risky business

Just last week the Bank of England sounded extremely confident that inflation would continue its gentle downward trend.

That theory has been contradicted by today's figures for July which show that both CPI and RPI inflation rose.

The increases have been driven by the costs of transport and clothing and are just another reminder of how unpredictable the economy is.

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Rail fares set to rise by 6.2%

Commuters in England face 6.2% rise in average train fares after a shock increase in the Retail Prices Index measure of inflation. Cars, air fares, clothing and housing are being blamed for the surprise rise in the Consumer Prices Index of inflation.