The UK’s inflation rate has climbed to its joint highest point in more than five years. The UK inflation rate, which is measured by the Consumers Price Index, rose to 2.9% in August 2017 largely due to the rise in the cost of fuel and clothing. The inflation rate was up 2.6% from July, and the fall in the value of Sterling since the EU Referendum almost 16 months ago has continued to be a major impetus for rising prices.
A rebound in the price of oil also had an impact on the inflation rate, pushing up the fuel prices.The rise in inflation was higher than expected and it came ahead of the Bank of England’s announcement on interest rates on Thursday 14th September. Economists have said that the Bank was still highly unlikely to raise rates at the meeting.