16th August 2011
The figures are for the Consumer Price Index, which excludes housing costs, and is now generally used by government to calculate rises in state benefits including the state pension.
The Retail Price Index , which does include housing costs, was steady at 5 per cent.
The Guardian reports that City of London had been expecting a smaller 0.1 per cent rise. It believes the rise has come about partly because retailers started discounting earlier in the summer bringing prices down in June and therefore not dampening down inflation for July.
The Office for National Statistics itself reports that "the upward pressure came from a wide variety of goods and services but by far the largest contribution came from financial services where, overall, fees rose this year but fell a year ago, particularly for arranging mortgages".