Although the consumer prices index was the most recent measure of inflation for August, it was higher than March 2012. However, the Office for National Statistics said that much of this effect is likely temporary. According to the ONS, this was the largest increase in CPI rates since 1997.
According to Reuters polling, the 3.2 percent rate was higher than expected at 2.9 percent.
Although the Bank of England anticipates that inflation will peak at 4 percent in 2019, it is expected to be temporary.
The push is largely due to higher travel costs and increased food prices. Food prices have increased significantly, even though they were artificially higher than August 2013, when the Eat Out to Help Out program was in operation.
Transportation costs are also rising. Petrol is now at 134.6p a litre, the highest since September 2013.
Prices of second-hand cars have risen to an alarming 18.4 percent in the last four months, due to the global shortage of semiconductor chip which has hampered the production of new vehicles.
Link” data-name=”European Central Bank just did something which hints they are worried” href=”https://www.express.co.uk/finance/city/1488891/european-central-bank-worried-eu-inflation-surges-latest” target=”_blank”>European Central Bank just did something which hints they are worried
While some inflation can be a good sign for the economy it will cause a drop in your living standards once it exceeds the pay rises or the interest rates on savings.
Chip’s Money Expert Tom Martin advises that you make changes in your work environment to take advantage of the high inflation rate.
Link” href=”https://www.express.co.uk/” rel=”noreferrer nofollow” target=”_blank”>Express.co.uk: “It’s not all doom and gloom, if you’re in work, ask for a pay rise, or look for a better paying job, as the job market is on your side right now.
“Also in many cities, rents remain low compared to pre-pandemic, but they are rapidly rising as Britain returns to work.
It might be worthwhile to look at moving, however, house prices have risen due to pent-up demand after a year of lockdowns, and stamp-duty holidays.
Finally, it is important to look at how to combat inflation if your savings are kept high. This could be done by investing or getting higher interest rates.
Publiated at Wed 15 Sep 2021, 14:01:00 +0000