U.K. July inflation slows marginally

U.K. inflation slowed slightly in July from a 14-month high, while factory gate inflation accelerated on higher petroleum prices, data released by the Office for National Statistics showed Tuesday.

Consumer price inflation dropped to 2.8 percent, in line with forecast, from 2.9 percent in June. On a monthly basis, consumer prices remained flat after falling 0.2 percent in June.

Core inflation that excludes prices of energy, food, alcoholic beverages and tobacco, slowed more-than-expected to 2 percent from 2.3 percent a month ago. It was forecast to ease moderately to 2.2 percent.

Similarly, retail price annual inflation fell to 3.1 percent in July from 3.3 percent in June. Economists were expecting a marginal fall to 3.2 percent.

Another report from ONS showed that output price inflation rose to 2.1 percent in July from 2 percent in prior month. The rate matched economists' forecast.

Factory gate prices rose 0.2 in July from a month ago, compared with a rise of 0.1 percent in June. The main upward contributions to the monthly price rise were from petroleum products and food products.

At the same time, input price inflation increased sharply to 5 percent from 4 percent in June. Nonetheless, it remained below the consensus forecast of 5.5 percent. Month-on-month, input prices surged 1.1 percent as expected for July.