The U.K. has recorded its biggest jump in inflation which is at its highest level since 2012
The annual rate of CPI inflation rose from 2% in July to 3.2% in Aug figures out this morning show.
The biggest driver of the increase is food and restaurant prices compared to this time last year when the chancellor’s Eat Out to Help out scheme was running.
However other worrying signs include Factory gate prices grew 5.9% on the year to August, up from 5.1% in July 2021.
The change in the annual rate was driven by products related to wood, cork, straw and plaiting materials, which saw the biggest annual increase since records began while Raw materials’ prices rose 11.0% on the year to August 2021, up from 10.4% in July 2021
