LONDON (AP) – Consumer prices in the U.K. rose at their fastest recorded rate during August as global supply shortages and higher wages accentuated the uptick from pandemic-related discounts a year ago, official figures showed Wednesday.
The Office for National Statistics said inflation accelerated to 3.2% in the year through August from 2% the previous month. The scale of the increase month-on-month was the biggest since the CPI measure of inflation was introduced a quarter of a century ago.
The spike takes inflation way above the Bank of England’s target of 2%, and is likely to ratchet pressure on policymakers to soon consider raising interest rates from record lows.
However much central banks downplay inflation, it is rising fast and here to stay. This is how government reduces its vast debts and we pay the price.
— Nigel Farage (@Nigel_Farage) September 15, 2021
The increase was slightly