City workers and travelers, many of whom wear face masks to the entrance of Liverpool Street station on Bishopsgate on 26 May 2021 in London, UK.
Mike Kemp | In Images | Getty Images
LONDON – The UK consumer price index rose 3.2% in the twelve months to August, according to official data on Wednesday, the largest monthly increase since records began in January 1997.
A Reuters poll had predicted a 2.9% reading for August. The index jumped 2.0% in July on an annual basis.
The Office for National Statistics, which released the data, noted that the increase “would probably be a temporary change” and said the UK government’s “Eat Out to Help” program last year may have accentuated the jump.
“In August 2020 many prices were discounted in restaurants and cafes due to the government’s Eat Out to Help Out (EOHO) plan, which offered customers half-priced food and drink to eat or drink (up to the value of £ 10). sterling) between Monday and Wednesday, “the ONS said in a statement.
“Because EOHO was a short-term scheme, the upward change in the 12-month August 2021 inflation rate is likely to be temporary.”
The reading is once again above the Bank of England’s 2% target and will no doubt increase the weight of voices calling for an end to the unprecedented pandemic-era stimulus policies. It is also occurring amid rising energy prices and as the country continues to reopen after strict coronavirus blockades.