Inflation fears are fueled as the August CPI registers its biggest monthly rise EVER to 3.2% – but experts say Rishi’s Eat Out scheme from last summer has distorted the numbers
Inflation fears were fueled today as the headline CPI rate made its biggest ever jump to 3.2 percent in August.
The consumer price index rose above analysts’ expectations, reaching its highest level in more than nine years.
Interest rates are well above the 2 percent target set by the Bank of England, which has insisted the spike will be temporary.
Experts have pointed to the warping effects of Rishi Sunak’s Eat Out to Help Out scheme, which cut prices last summer.
But it once again raises the specter of prices spiraling out of control in the wake of the pandemic.
The consumer price index rose above analysts’ expectations, reaching its highest level in more than nine years
The Office for National Statistics (ONS) said the CPI rose from 2 percent in July to 3.2 percent in August, the highest since March 2012 and the largest monthly increase since the record began in 1997.
The ONS said that aside from last summer’s Treasury-funded rebates, there was also likely some impact from the supply chain crisis on inflation last month, which the ONS says helped push food and non-alcoholic beverage prices up. to conduct.
Jonathan Athow, deputy national statistician at the ONS, said: “August saw the biggest month-on-month rise in annual inflation since the series was introduced nearly a quarter of a century ago.
“But much of this will likely be temporary, as restaurant and cafe prices dropped significantly last year as a result of the Eat Out to Help Out scheme, while prices rose this year.
“The prices of food and non-alcoholic drinks have risen more than last year, which also contributed to an increase in the tariff.”
Shadow Chief Secretary to the Treasury Bridget Phillipson said: ‘People are already feeling the effects of inflation, in their weekly shop and at the gas station.
“The government should do everything it can to secure the supply chains that keep our economy going, and shouldn’t hit families with a devastating cut in Universal Credit and tax hikes.”
Experts have pointed to the warping effects of Rishi Sunak’s Eat Out to Help Out scheme, which cut prices last summer