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Air fares and groceries keep inflation off target

Higher flight prices and food bills offset lower fuel and used-car prices to keep the cost of living well above the Bank of England's target today.

The Consumer Prices Index (CPI) held at 3.1% in August, the Office for National Statistics (ONS) said, still well above the Bank's 2% target.

The largest upward pressure on inflation came from air transport, where fares rose by 16.1% between July and August - a record for that period, the ONS said.

A 2.8% hike in clothing costs from July to August, the largest rise for the period since 2001, and a 0.1% increase in food prices across the period also had an upward effect.

But falling petrol costs and second-hand car prices over the month - in contrast with a steep rises a year earlier - held CPI overall.

Today's figure, which was higher than most City expectations, is likely to fuel concerns at the Bank about the recent strength of inflation.

Belfast Telegraph


From Belfast Telegraph