UK inflation rise fuels debate over higher interest rates

ONS says falling food and fuel costs failed to offset pick up in prices caused by higher clothing costs and dearer air fares

Britain's inflation rate ticked higher last month, heating up the debate over when Bank of England (BoE) policymakers will start raising interest rates.

The consumer price index (CPI) measure of inflation edged up to 0.1% in July from zero the month before, defying City expectations for no change and pushing the pound higher. But inflation is still well below the Bank's 2% target, having hovered around zero since February.

Related: Rail fares forecast to rise 1% after latest inflation data