Price rises hit highest level in nearly a decade
In this speed read we look at the recent rise in inflation
- Inflation, the rate at which prices are rising, recorded a record jump in August rising to 3.2% up from 2.0% in July.
- Food and petrol prices are considerably higher than this time a year ago, when travel restrictions remained and many diners were supported by the Eat Out to Help Out Scheme.
- The rise is expected to be temporary, latest government forecasts predicting inflation will be 2.4% a year from now, before falling back below the government's 2.0% target in 2023.
- Rising inflation places pressure on the Bank of England to raise interest rates to curb spending. As our Editor's Pick last week indicated, these may well rise slightly over the next year.
- Source: Dataloft, ONS
