UK inflation rises to 4.5%
The Office for National Statistics announced today that the consumer-price index rose 4.5% in August from 4.4% in July.
The ONS said that the rises were mainly due to higher prices for clothing and footwear, fuel and energy.
The cost of clothing increased by 3.7% which was the biggest increase since 1997 when records began. Furniture, household equipment and maintenance rose by 2%, which was also record rise for the July to August period.
The largest upward effects came from furniture and furnishings and non-durable household goods where prices rose by 2.3% and 4.9% respectively.
The main downward pressure came from transport services, and from recreation particularly games, toys and computer consoles.
Inflation continues to be more than double the Bank of England’s target rate of 2%. The Bank is predicting that inflation will hit 5.0 per cent later this year.
