Official figures revealed the UK’s inflation rate rose to it highest level in more than five years in August as the price of petrol and clothing rose….reports Asian Lite News
UK inflation measured by the Consumer Prices Index rose to 2.9 per cent in August, up from 2.6 per cent in July, the Office for National Statistics (ONS) figures said.
According to the ONS, the prices of most goods climbed during August, largely because of rising import costs for retailers, reports the BBC.
However, clothing and footwear prices had the biggest impact, climbing 4.6 per cent year-on-year, their highest level since records began.
Petrol also pushed the overall cost of living higher.
The fall in the value of the pound since the European Union referendum continued to be a major impetus for rising prices, the BBC quoted the ONS as saying.
But a rebound in the price of oil also had an impact, pushing up fuel prices.
The bigger-than-expected rise in inflation comes ahead of the Bank of England’s next announcement on interest rates on Thursday.
August’s inflation rate is far above the Bank of England’s target of 2 per cent.
The Bank has said it expects inflation to reach 3 per cent in October, but start to ease early in 2018.