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UK inflation jumps to nine-year high after rebounding from restaurant discounts

File photo: People passing by a sign in a store window during a coronavirus disease (COVID-19) outbreak in Manchester, England, on December 15, 2020.Reuters / Phil Noble // File Photo

September 15, 2021

Andy Bruce

London (Reuters)-Britain’s inflation rate has risen more than nine years last month, after recording the highest annual Shonen Jump in at least 24 years, primarily with a temporary boost reflecting the “Eat Out to Help Out” scheme. Recorded a high price of. That pushed down restaurant meal prices last year.

According to the National Bureau of Statistics, consumer prices rose 3.2% annually after rising 2.0% in July last month. This is the highest since March 2012.

The 1.2 percentage point rise in annual inflation over the month was the sharpest rise since detailed records began in 1997.

A Reuters economist poll pointed out that the August value was 2.9%.

ONS statistician Jonathan Ato said, “Last year’s restaurant and cafe prices fell sharply due to the’Eat Out to Help Out’scheme, but this year’s prices have risen, so much of this (rise) has fallen. It’s likely to be temporary. “

The initial market response to the data was limited.

In August 2020, the government offered a 50% discount of up to £ 10 ($ 13.82) per person on meals from Monday to Wednesday, revitalizing the economy and reintroducing people after the pandemic blockade. I urged you to spend money.

Restaurant prices represent more than half of last month’s 1.2 percentage point rise in headline inflation.

Still, Bank of England policymakers looking to seek an early termination of the stimulus that began at the height of the COVID-19 pandemic last year will find a sharper rise in inflation than expected.

Yael Selfin, Chief Economist at KPMGUK, said:

“But tightening can now be delayed until mid-next year, as there is a risk of ruining the recovery before it takes root.”

($ 1 = 0.7235 lbs)

(Report by Andy Bruce; edited by Kate Holton)



UK inflation jumps to nine-year high after rebounding from restaurant discounts

Source link UK inflation jumps to nine-year high after rebounding from restaurant discounts

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