CPI inflation rose to 4.7pc in August, the highest level recorded since CPI records began in 1997, with the upturn attributed to higher energy and food prices, compared to a year ago.
On the broader RPI measure, inflation eased by 0.2 percentage points to 4.8pc. Despite the latest rise in CPI inflation, analysts believe it is now at or close to its peak, as oil prices decline. New Star's Simon Ward said: "CPI inflation is likely to peak at about 4.8pc in September before embarking on a steady decline. With wage settlements stable, money growth weakening and the economy stagnant, the MPC should be able to cut interest rates either next month or by November at the latest." To comment, contact David Carr on 0207 034 2638 or email: [email protected]
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