The UK’s inflation rate has climbed to its joint highest in more than five years in August as the price of petrol and clothing rose. Figures from the Office for National Statistics, ONS, show that the UK inflation measured by the Consumer Prices Index rose to two-point-nine percent in August, up from two-point-six percent in July.
ONS said the fall in the value of sterling since the EU referendum continus to be a major impetus for rising prices. But a rebound in the price of oil also had an impact, pushing up fuel prices.
The bigger-than-expected rise in inflation comes ahead of the Bank of England’s next announcement on interest rates on Thursday. However, economists said the Bank is still highly unlikely to raise rates at the meeting.
Sterling jumped against the dollar on the news, hitting one dollar, thirty-two cents at one point, its highest since the start of 2017. The pound was also higher against the euro, up one percent at one Euro, one cent.