The 12-month inflation rate fell from 1.1% to 0.5% in August, with the government’s Eat Out to Help Out scheme by far the largest contributor to the decline, Office for National Statistics figures released this morning (16 September) show.
Neil Birrell, chief investment officer at Premier Miton, said: "The inflation data in the UK surprised on the upside. The core year-on-year CPI was up 0.9% against expectations of 0.5%. Rising inflation has been much discussed as the inevitable consequence of all the stimulus being injected into the economy. Policymakers won't be worried about this number, they are more likely to be pleased there is activity in the economy."
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