City workers and commuter wearing face masks towards the entrance to Liverpool Street Station in Bishopsgate, London, England, May 26, 2021.
Mike Kemp | In Photo | Getty Images
The London-UK consumer price index surged 3.2% in the 12 months to August, with official data showing a record high month-on-month since the record began on Wednesday in January 1997.
A Reuters poll predicted an August measurement of 2.9%. The index surged 2.0% each year in July.
The National Bureau of Statistics, which released the data, said the surge was “likely a temporary change” and that the UK government’s “Eat Out to Help Out” program last year may have highlighted the jump.
“In August 2020, the government’s Eat Out to Help Out (EOHO) scheme discounted many prices for restaurants and cafes, Monday and Wednesday,” he said.
“EOHO was a short-term scheme, so the 12-month inflation rate rise in August 2021 could be temporary.”
This reading is again above the Bank of England’s target of 2%, and is undoubtedly weighting those seeking to abolish the unprecedented pandemic stimulus. It also happens in the midst of rising energy prices and as the country continues to reopen after a strict coronavirus blockade.
Samuel Tombs, Chief UK Economist at Pantheon Macroeconomics, also emphasized that the price of used cars was due to the upside surprise.
“The sharp monthly rise in core CPI in August was also largely due to the sharp rise in used car prices by 4.9%, pushing inflation for that component to an eye-catching 18.3%.” Said in a research note.
Gong said the consumer price index headline rate in September is unlikely to rise any further as restaurant prices rebounded at this point last year.
But he added that both higher energy price caps and higher taxes on the tourism industry could contribute to the October surge.
Britain’s inflation rate has risen the most since the record began
Source link Britain’s inflation rate has risen the most since the record began