Inflation rate rises to six-month high
Data published by the Office for National Statistics (ONS) has revealed that inflation unexpectedly rose to a six-month high of 2.7% in August.
Experts had forecasted inflation to fall to 2.4% during August, from 2.5% in July. Transport and clothing prices helped to fuel the rise, the data revealed.
However, mobile phone charges, alongside rising prices for furniture and household goods, had a ‘downward effect’ on inflation.
Meanwhile, wages are rising faster than the rate of inflation, according to the ONS, with official data recently revealing that wages grew by 2.9% in the three months to July.
Commenting on the statistics, Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said: ‘With UK economic conditions subdued, and little evidence that higher inflation is translating into materially stronger pay growth, the Monetary Policy Committee (MPC) has sufficient scope to opt for a prolonged period of monetary stability.
‘Against a backdrop of significant political and economic uncertainty, more needs to be done to boost UK growth and productivity, including kickstarting business investment through tackling the high upfront cost of doing business in the UK.’