UK Inflation Soars To Highest Level Since 2012
UK inflation has jumped to its highest for more than nine years following a record increase in August. Cafes and restaurant prices raced higher after last August’s hefty Eat Out To Help Out discounts.
The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation increased from 2% in July to 3.2% in August. This is the highest since March 2012 and is the largest increase since records began in 1997. The ONS attributed the jump to discounts seen across the hospitality sector last August under the government’s Eat Out To Help Out scheme, which attempted to boost consumer spending and confidence post-lockdown.
The ONS also said there was likely to have been some impact from the supply chain crisis on inflation last month, which pushed up the prices of food and non-alcoholic drinks. However, the ONS said that the hefty increase seen in August will only be temporary.
Deputy national statistician at the ONS, Jonathan Athow, said: “August saw the largest rise in annual inflation month on month since the series was introduced almost a quarter of a century ago.
“However, much of this is likely to be temporary as last year restaurant and cafe prices fell substantially due to the Eat Out to Help Out scheme, while this year prices rose.”