Rates are well above the Bank of England’s 2% target
Inflation rose to 3.2% in August, up from 2% in July. This is the highest ever recorded increase, according to the National Bureau of Statistics (ONS).
Last month’s Consumer Price Index (CPI) scale was the highest since March 2012, but ONS says that much of its impact is only temporary.
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The rate has once again surpassed the Bank of England’s 2% target.
ONS said eating out was ongoing to help with meals last August, making it a more expensive reason to eat and drink.
Additionally, companies in the hospitality and tourism sector have benefited from the VAT discounts introduced to support some of the industries that have been affected most severely through the pandemic.
“We are accused of national statisticians at ONS,” said Jonathan Atow.
“But it’s likely that much of this is temporary. Last year, prices for restaurants and cafes fell sharply and we went to eat to support the scheme, which has led to prices rising this year. ”
Martin Lawrence, investment director at Wesleyan Group, said: “Supply chain pressures are one of the drivers behind this month’s inflation spike, far surpassing the 0.7% rate recorded in January. However, the Bank of England said it would be the first to end the year. We expect inflation to reach 4%.
“Despite the headlines of wage growth, climbing costs mean that household heads and savers are beginning to feel a squeeze, which is not helped by the recently announced changes to national insurance.”
“For those looking to save money during lockdown and ensure a better return on their savings, protecting their hard-earned cash is a must. With interest rates remaining at the bottom of the rock, Savers is a must. It is essential to review all possible options to achieve substantial growth.”
