Inflation accelerated sharply in the United Kingdom, to 3.2% for the twelve months ended in August against 2% for the twelve months ended in July, the reopening of the economy having driven up the prices of transport and restaurants in particular.
According to the National Statistics Office which publishes these data on Wednesday, the jump of 1.2 percentage points is the strongest ever recorded since the start of these data which began in January 1997. The ONS specifies, however, that this surge should be temporary. Last August, the prices of meals in restaurants were notably depressed by a government grant from Boris Johnson, the “Eat out to help out” program, in addition to a re VAT reduction which was intended to revive the sector hard hit by the pandemic.
The price of raw materials also contributed to the sharp rise in prices, rising to 11% over the closing year in August, compared to 10.4% for July. . Materials are in short supply due to supply chain problems and the lack of delivery drivers in the UK.
“Record inflation is a sign of what’s to come,” said Yael Selfin, chief economist at KPMG. It “might subside a bit in September but should stay high and could rise even higher afterwards.” Hiring difficulties, cost pressure on businesses, supply chain issues and post-covid structural changes all point to an increase at least until the end. of the year ”, she explains. This will “inevitably lead the Bank of England to question the timing of tightening monetary policy and interest rate hikes to avoid inflationary risks on the horizon”, concludes the economist.
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