UK Inflation Jumps to 2.9% on Higher Energy Bills as Food Price Inflation Falls Again
Updated
Updated · iea.org.uk · Aug 24
UK Inflation Jumps to 2.9% on Higher Energy Bills as Food Price Inflation Falls Again
2 articles · Updated · iea.org.uk · Aug 24
Summary
Britain’s headline inflation rate rose to 2.9% in the latest ONS data, with the bulk of the increase driven by higher household energy bills after the Ofgem price cap went up.
Most other components were little changed, while food price inflation fell again, undercutting claims that supermarket price gouging is the main force behind grocery cost increases.
Julian Jessop said inflation could climb further in coming months as pipeline pressures feed through, and may not return to the Bank of England’s 2% target until late next year.
Weak labour market data, subdued demand and strong competition should still limit second-round inflation effects, suggesting pressure on the Bank of England to avoid overreacting.