UK CPI Accelerates to 3.1% in August; Core Index Growth Unchanged
MacroDigital Finance
The UK's Office for National Statistics reported on the 16th that the August consumer price index rose 3.1% year-on-year, the fastest pace in five months. It accelerated from 2.9% in July and matched the median forecast of economists compiled by Reuters. The rise reflects renewed increases in energy prices amid the rekindling of conflict in the Middle East Gulf region. Core inflation, which excludes volatile items such as food and fuel, held steady at 2.6% for a fourth consecutive month, while inflation in the services sector was also flat at 3.4%. The Bank of England had forecast in July that August inflation would come in at 2.8% year-on-year, but the central bank is expected to leave interest rates unchanged at its monetary policy committee meeting on the 17th.
