Inflation is on the up again.
Figures released by the Office for National Statistics showed Consumer Prices Index including owner occupiers’ housing costs was 2.7% in August 2017, up from 2.6% in July 2017 while The Consumer Prices Index (CPI) 12-month rate was 2.9% in August 2017, up from 2.6% in July 2017.
The ONS said that rising prices for clothing and motor fuels were the main contributors to the increase in the rate while Air fares also rose between July and August but the rise was smaller than between the same two months a year ago and so resulted in a partially offsetting, downward contribution.
Anna Leach, CBI Head of Economic Intelligence, said:
“Inflation picked up more quickly than expected this month, driven by clothing and fuel price rises. This piles the pressure on interest rate decision-makers at the Bank of England ahead ofThursday’s rate announcement.
“Today’s figures highlight the pressure on consumers from rising prices against the backdrop of sluggish wage growth. To pave the way for a recovery in living standards, the Government must deliver a meaningful industrial strategy to boost productivity, and ensure UK-EU discussions progress rapidly to transition and trade arrangements to help protect business investment.”