Surge in food prices keeps inflation high

first_img HEADLINE annual inflation held steady at 3.1 per cent in August as sharp rises in the cost of air fares, clothing and food prices offset softer petrol prices, official figures revealed yesterday.The Office for National Statistics (ONS) said that inflation rose 0.5 per cent between July and August but that the annual rate remained the same, surprising economists who had expected a fall to 2.9 per cent. Food price inflation, which rose to 3.9 per cent from three per cent in July had been expected to drive up CPI in August. But sharp rises in clothing and footwear – which saw the largest monthly rise for a July to August period since 2001 – and a surge in air fares of 16.1 per cent also surprised analysts. whatsapp KCS-content Show Comments ▼ More From Our Partners UK teen died on school trip after teachers allegedly refused her pleasnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comKiller drone ‘hunted down a human target’ without being told tonypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comConnecticut man dies after crashing Harley into live bearnypost.com‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.com whatsapp Share Tuesday 14 September 2010 9:03 pm by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comWanderoamIdentical Twins Marry Identical Twins – But Then The Doctor Says, “STOP”Wanderoam CPI inflation has persistently been higher than expected and has been running consistently well above the Monetary Policy Committee’s target throughout 2010. But the majority of analysts do not expect monetary tightening any time soon: “A scenario where the MPC simply loses patience with inflation and sanctions a hike in interest rates seems improbable. However sticky inflation does suggest that the chances of further QE are waning,” said Investec’s Philip Shaw.The annual retail prices index (RPI) rose by 4.7 per cent, down from 4.8 per cent in July. The RPIX, which strips out mortgage interest payments, also eased to 4.7 per cent. Martin Weale, the newest member of the Bank of England’s (MPC), said he had been surprised by the strength of inflation. But he added he was comfortable with forecasts published by the central bank in August which showed inflation falling back to target in the medium term. “The evidence I’ve seen doesn’t suggest that inflation expectations have been de-anchored,” Weale told the Treasury Select Committee. Surge in food prices keeps inflation high Tags: NULLlast_img