21 March, Wednesday

UK inflation unexpectedly jumps as the pound sterling's slump after Brexit vote still affects prices


A- A A+
Inflation rose unexpectedly to 2.9 per cent in August, as the slump in sterling since the Brexit vote continued to have a powerful impact on domestic UK prices.
The reading was up from 2.6 per cent in July and outstripped expectations of City of London analysts of a 2.8 per cent print from the Office for National Statistics.
Core inflation - which strips out volatile energy and food prices - jumped 2.7 per cent, up from 2.4 per cent previously.
The news sent up the value of sterling 0.54 per cent on the day to $1.3233 as traders bet on an earlier interest rate rise from the Bank of England.
The Bank is due to vote again on rates on Thursday.
The biggest contributor to the change in the month's CPI inflation rate was from clothing and footwear costs, followed by transport.
There was also upward pressure from furniture and household equipment.


The Independent

EurasiaDiary © Must be hyperlinked when used.

Follow us:
Twitter: @Eurasia_Eng
Facebook: EurasiaEng