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UK Inflation Reaches 2.9% in August

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U.K. inflation accelerated more than forecast in August, pushing close to 3 percent again after the biggest surge in clothes prices in almost three decades.The jump in the rate to 2.9 percent from 2.6 percent in July comes in the wake of a renewed decline in the pound, which has been boosting import costs since the Brexit vote in 2016. Core inflation also accelerated more than economists expected, reaching the most since 2011, the Office for National Statistics said.

The numbers — intensifying a squeeze on households — may also put fresh pressure on Bank of England policy makers, who are grappling with price growth above their 2 percent target. The nine-member Monetary Policy Committee has split in recent months, with two members pushing to hike interest rates from a record-low 0.25 percent.

Source: U.K. Inflation Accelerates More Than Forecast to Reach 2.9% – Bloomberg

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.
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