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UK inflation - Huge jump in August from Bank of England target level

By rotide
Created 15/09/2021 - 10:42

Inflation data just published by the Office of National Statistics, has shown one of the largest month to month changes for more than 20 years, surging from July's level of 2% to August's 3.2%.

While a rise in the inflation rate was largely expected, as various Government sponsored discounting schemes were in operation in August last year, most economists had pencilled in a sub 3% rate.

However, food and energy prices have been higher and eating and drinking out, which we can do now have also cost more. The ONS seems confident that inflation will not stay at this level long term but with fuel prices at the pumps higher and energy companies set to raise prices as we start using more Winter energy, the next movement could still be upwards.

Keep an eye on your domestic energy and pump fuel prices. It wasn't so long ago that the world was awash with fuel to the extent that countless millions of gallons of the stuff was being stored in parked tankers across the globe and probably still is. Thanks to the Pandemic, globally we have been using a lot less fuel. Planes not flying, cars not being used for months and months. And then we have the not insignificant matter that many countries are changing asap from fossil fuels to sustainable electric transportation, so we would expect the price to come off the current manipulated highs.

Whether it does though is another matter.


Source URL:
https://www.newbusiness.co.uk/content/uk-inflation-huge-jump-august-bank-england-target-level