UK Inflation Reaches 2.9% in August

U.K. inflation accelerated more than forecast in August, pushing close to 3 percent again after the biggest surge in clothes prices in almost three decades.The jump in the rate to 2.9 percent from 2.6 percent in July comes in the wake of a renewed decline in the pound, which has been boosting import costs since the Brexit vote in 2016. Core inflation also accelerated more than economists expected, reaching the most since 2011, the Office for National Statistics said.

The numbers — intensifying a squeeze on households — may also put fresh pressure on Bank of England policy makers, who are grappling with price growth above their 2 percent target. The nine-member Monetary Policy Committee has split in recent months, with two members pushing to hike interest rates from a record-low 0.25 percent.

Source: U.K. Inflation Accelerates More Than Forecast to Reach 2.9% – Bloomberg

A Big Sigh of Relief

Dollar Gains Tentative Traction

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.