UK Inflation Rises To 2.9%

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The UK’s inflation rate climbed to its joint highest in more than five years in August with the price of petrol and clothing rising.

Figures show UK inflation measured by the Consumer Prices Index rose from 2.6% in July to 2.9% in August.

The Office for National Statistics said the fall in the value of sterling since the EU referendum continued to be a major contributor to rising prices.

Fuel prices have been pushed up following a rebound in the price of oil, also having an impact.

The rise comes ahead of the Bank of England’s next announcement on interest rates – due later today.

Economists, however, predict is unlikely to raise rates at the meeting.

The prices of most goods climbed during August, according the ONS, largely as a result of rising import costs for retailers.

Clothing and footwear prices had the biggest impact, however, climbing 4.6% year-on-year, their highest level since records began.

Petrol prices increased 1.8p a litre to 115.7p during the month, pushing living costs higher, while diesel gained 2p to 117.6p.

Frances O’Grady, General Secretary of the TUC, said the “cost of living squeeze” was continuing, with rising inflation outpacing wages.

“The government needs to get a grip and get pay rising across the economy,” she said.

Wage figures released by the ONS recently showed a freeze in the rise of wages, remaining at just 2.1%.

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