2 weeks Ago By The Independent
The rate of inflation in the has in August, the (ONS) said. The latest data from the ONS showed inflation has remained above the 2 per cent target for the second month in a row, after rising for the first time this year in July. It will likely reinforce expectations that the will hit the when it makes a decision on Thursday.
Grant Fitzner, chief economist at the Office for National Statistics, said: “Inflation held steady in August as various price fluctuations offset each other. “The main movements came from air fares, in particular to European destinations, which showed a large monthly rise, following a fall this time last year. “This was offset by lower prices at the pump, as well as falling costs at restaurants and hotels.
Also, the prices of shop-bought alcohol fell slightly this month, but rose at the same time last year.” Services inflation rose by 5.6 per cent in August, as economists expected, compared to 5.
2 per cent in July amid a possible impact from the last leg of Taylor Swift’s UK tour. While services inflation is volatile, it has been stubbornly high and has been watched closely by Bank rate-setters. CPI rose by 2.
2% in the 12 months to August 2024, unchanged from July 2024. Read the release ➡️ — Office for National Statistics (ONS) (@ONS) Darren Jones, chief secretary to the Treasury, added: “Years of sky-high inflation have taken their toll; and prices are still much higher than four years ago. “So, while more manageable inflation is welcome, we know that millions of families across Britain are struggling, which is why we are determined to fix the foundations of our economy so we can rebuild Britain and make every part of the country better off.
” Inflation shows how the prices of goods and services have changed over time, with the Consumer Price Index (CPI) being the primary measure of inflation. The ONS releases inflation data every month. Monica George Michail, NIESR Associate Economist, said: “Annual CPI inflation in August remains unchanged from July at 2.
2 per cent. Core and Services inflation rates have slightly gone up, after an encouraging fall in July, recording 3.6 and 5.
6 per cent. “Given that inflation is set to gently rise towards the end of the year, and that underlying inflation remains elevated, this reduces chances of a rate cut tomorrow, and new developments will be closely monitored by the MPC.”.
