Sterling spikes as inflation hits six-month high of 2.7%

Eight-week high against US dollar

Tom Eckett
clock • 2 min read

UK inflation unexpectedly rose to 2.7% in August, beating analysts' expectations of a drop to 2.4% from 2.5% the previous month.

According to the Office for National Statistics (ONS), the Consumer Price Index (CPI) rose to its highest level since February, driven by increasing prices for transport services, clothing and recreational and cultural goods. However, these rises were partially offset by a fall in prices for furniture and household goods and telecommunications. 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 inflatio...

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