𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

UK inflation remained unchanged last month, according to official figures, but food and drink price rises have accelerated for the fifth month in a row.

The Office for National Statistics (ONS) announced on Wednesday the rate of Consumer Prices Index was 3.8 per cent in August, the same as July. This was the level that most economists had been expecting.

However, the rate of food and drink inflation rose to 5.1 per cent in August, from 4.9 per cent in July, as shoppers continued to face higher prices for items at the till. It marks the fifth month in a row that the rate has increased.

ONS chief economist Grant Fitzner said: “The cost of airfares was the main downward driver this month with prices rising less than a year ago following the large increase in July linked to the timing of the summer holidays.

“This was offset by a rise in prices at the pump and the cost of hotel accommodation falling less than this time last year.

“Food price inflation climbed for the fifth consecutive month, with small increases seen across a range of vegetables, cheese and fish items.”

Chancellor Rachel Reeves said: “I know families are finding it tough and that for many the economy feels stuck. That’s why I’m determined to bring costs down and support people who are facing higher bills.

“Through our Plan for Change, we are taking action — raising the National Living Wage, extending the £3 bus fare cap, and expanding free school meals, to put more money in people’s pockets while we work to build a stronger, more stable economy that rewards hard work.”

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