UK inflation close to 3% in August after surge in clothing prices
London — UK inflation accelerated more than forecast in August, pushing close to 3% again after the biggest surge in clothes prices in almost three decades. The jump to 2.9% from 2.6% in July puts the spotlight squarely back on one of the most prominent economic repercussions of the Brexit vote in 2016. The pound has fallen 11% against the dollar since the referendum, boosting import costs and feeding through to prices for everyday household items. The inflation rate has not been higher since 2012. The numbers, as well as intensifying a squeeze on households, may put fresh pressure on Bank of England policy makers, who are grappling with price growth above their 2% target. While just two of the nine-member monetary policy committee (MPC) voted to increase interest rates from a record-low 0.25% last month, some economists say a third — Andy Haldane — could join them at this week’s meeting.
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