Investing.com - British consumer prices in August rose by 2.7% compared with a year earlier, the Office for National Statistics said on Wednesday.
That was above expectations for an increase of 2.4% and compared to the 2.5% rise seen in July.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a seasonally adjusted rate of 2.1% last month, compared to forecasts for 1.8% and the 1.9% pace seen in July.
Excluding this reading and the slight uptick seen in July, inflation in the UK has been steadily declining since it hit 3.1% last November.
The Bank of England held interest rates steady last week and emphasized its expectations for inflation to slow “sustainably to the 2% target at a conventional horizon”.
However, the UK central bank was adamant that its “projections were conditioned on the expectation of a smooth adjustment to the average of a range of possible outcomes for the United Kingdom’s eventual trading relationship with the European Union. “
Brexit talks are set to intensify over the coming week, with the first of three summits that European Union leaders hope will settle an agreement for departing Britain within the next two months.
EU officials will get an update on negotiations in Austria on Thursday and also decide whether to hold a special summit on Brexit in November, now that they no longer expect to clinch a deal at their regular gathering scheduled for October 18-19.
The timing of the meetings tallies with EU Brexit negotiator Michel Barnier's suggestion that an exit deal could be struck in six to eight weeks if negotiators are realistic in their demands.
Most economists do not expect the BoE to raise rates again until after Britain has left the EU.