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Inflation accelerated at its fastest monthly pace on record in August, as it shot up to 3.2pc, a huge leap from July’s level of 2pc to take it far above the Bank of England’s target.
The jump of 1.2 percentage points is the largest ever recorded increase in CPI’s annual rate since records began in 1997.
The steep increase risks fuelling fears of rocketing prices as the UK recovery takes hold as transport costs and prices at restaurants rose dramatically. Transport costs jumped by 0.87 percentage points in August as people travelled again after repeated lockdowns, while hospitality prices pushed inflation up by 0.65 percentage points, its highest ever contribution.
But the Office for National Statistics said the spike will likely prove to be temporary, pointing to Rishi Sunak’s Eat Out to Help Out scheme last summer pushed the cost of dining out artificially low.
5 things to start your day
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