The worldwide fear of #inflation may have been realized in the #UK. August saw a rocket in inflation rates from 2% to 3.2% in the kingdom, which is the highest monthly rise in almost a decade.
The surge can be due to higher prices in many sectors. In August alone, the rise in food, transport, recreation, furniture and restaurant prices was more than 1%. Moreover, there are predictions saying that gas and electricity bills are set to increase, along with clothing prices in this coming autumn.
On a different note, the average UK house price fell by £10,000 in July compared with a month earlier, shows official figures.
• UK inflation hits 3.2% in August – the fastest monthly pace on record 👇
• Pressures remain “driven by pandemic-related distortions”
• Household furniture up 8%; camping kit 10%
— Telegraph Business (@telebusiness) September 15, 2021
The Office for National Statistics said the rise was likely to be temporary. However, some experts predict inflation to head even higher to around 5% by the end of the year, before slowing sharply next year.
Sources: Guardian, FT, CNBC