LONDON (Reuters) -British consumer price inflation increased to 3.8% in July from 3.6% in June, official data showed on Wednesday.

The Bank of England had forecast headline inflation would rise to 3.8% while economists polled by Reuters had mostly expected a rate of 3.7%.

The BoE lowered interest rates this month but only after a close 5-4 vote by policymakers. The Monetary Policy Committee suggested it would slow the already gradual pace of its rate cuts due to persistently above-target inflation.

Inflation in Britain is running higher than in the United States, where it held at 2.7% in July, and in the euro zone where it is expected to remain around the European Central Bank’s 2% target over the coming years.

By contrast, the BoE thinks British inflation will hit 4% in September, dou

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