ROBUST clothing prices and higher travel costs led the underlying rate of inflation to rise unexpectedly in July.

Figures from the Office for National Statistics showed the usual measure of underlying inflation - known as the Retail Price Index (RPIX) - rose to 2.9 per cent last month, up from 2.8 per cent in June.

The news means that RPIX has now been above the Government's 2.5 per cent target for inflation for nine months. Clothing and footwear provided the largest upward impact on inflation, especially women's outerwear.

This week statistics from the British Retail Consortium showed that soaring temperatures in July had helped heat up sales on the High Street.

City economists had forecast a fall in the underlying rate of inflation - which excludes mortgage interest payments - from its recent peak of three per cent.