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| Version 0 | Version 1 |
|---|---|
| UK inflation hits six-month high | UK inflation hits six-month high |
| (35 minutes later) | |
| The UK inflation rate unexpectedly rose in August to 2.7%, the highest level in six months. | The UK inflation rate unexpectedly rose in August to 2.7%, the highest level in six months. |
| Economists had expected a Consumer Prices Index rate of 2.4%. The pound rose after the data was released by the Office for National Statistics. | |
| Wages are still rising more than inflation, with data last week showing wages, excluding bonuses, grew by 2.9% in the three months to July. | Wages are still rising more than inflation, with data last week showing wages, excluding bonuses, grew by 2.9% in the three months to July. |
| Rising prices for recreational goods, transport and clothing drove the rise. | Rising prices for recreational goods, transport and clothing drove the rise. |
| In July, CPI was 2.5%, which had been the first jump in the index since November. | In July, CPI was 2.5%, which had been the first jump in the index since November. |
| Mike Hardie, head of inflation at the ONS, said: "Consumers paid more for theatre shows, sea fares and new season autumn clothing last month. | |
| "However, mobile phone charges, and furniture and household goods had a downward effect on inflation." | |
| Prices rose less sharply for furniture, household goods and communications. | |
| Sterling rose to $1.32 following the news, its highest level since July. | |
| "The numbers reinforce expectations that policymakers will gently lift interest rates over the next couple of years," said Ben Brettell, senior economist at Hargreaves Lansdown. | |
| The Bank of England raised its key interest rate for only the second time in a decade last month. The current interest rate of 0.75% is the highest since March 2009. | |
| It has also forecast that inflation will fall back to the target rate of 2% by 2020. | |
| "The figures won't come as welcome news to the Bank of England, though - they'll be desperate to leave policy unchanged until we get some clarity over Brexit and won't want to be forced into a rate rise by accelerating prices," said Mr Brettell. |