Annual CPI inflation in the UK vaulted above the Bank of England's target level of 2.0 pct in July to hit its highest level since the series began in January1997 -- driven by higher oil and transport prices, official figures showed today. The annual rate rose 2.3 pct in July, up from 2.0 pct in June, the office for National Statistics said. Analysts polled by AFX News had only expected a rise to 2.1 pct. The central bank is charged with targeting an annual CPI rate of 2.0 pct over a two-year horizon. Today's figures may cause some concern on the rate-setting Monetary Policy Committee. On a month-on-month basis, the CPI measure rose 0.1 pct from June. The latest reading is above predictions of a 0.2 pct fall. NS said the jump in July was due to higher transport and petrol prices amid rocketing oil prices during the month. The cost of housing, water, electricity, gas and other fuels were at their highest level since the series began in January 1997 while transport costs were at their highest since September 1997. The wider RPI measure of inflation rose by 2.9 pct in July from a year earlier, unchanged from last month and slightly above analysts' forecasts for a dip to 2.8 pct. The measure has now stood at 2.9 pct for three months in a row. Upward effects on the RPI index were similar to those for the CPI measure, but a notable downward effect came from mortgage interest payments, which showed a larger increase a year ago following last June's quarter point rise in interest rates, ONS said. On a month-on-month basis, RPI rose was unchanged from the previous month, against forecasts of a 0.1 pct fall. RPI-X -- which excludes mortgage payments -- rose by 2.4 pct from a year earlier but was not changed form the previous month. Analysts had forecast a year-on-year rise of 2.3 pct and a 0.1 pct fall month-on-month. The Bank of England was previously charged with targeting RPI-X at 2.5 pct.