Last month the BoE said sterling’s 10 per cent fall against the dollar and the euro after the European Union vote was likely to put upward pressure on prices for several years and cause inflation to overshoot its 2 per cent target.
Advertisement
On a monthly basis, output prices gained 0.1 percent, following a 0.3 percent rise in July.
Market expectations had been for an August increase of 0.7 per cent.
Index from the FAO showed that the Food Price Index, FPI, increased in August to a 15-month high, up by 1.95 per cent, compared with July, as most commodity prices rose in August, led by dairy, oils and sugar.
In total, more than 700 household goods and services are measured, to assess if they are generally rising or falling in price.
Rate of inflation in pulses, too, came down slightly, at 34.55% in August 2016 from 35.76% in July 2016. Breads, cereals and meat products all proved pricier in August.
India’s Wholesale prices have risen continuously for the fifth month.
The ONS also reported that inflationary pressures are mounting for United Kingdom businesses that import materials as figures revealed an significant upward shift in prices. The movement in the prices of food items during the month resulted in a 1.10% increase in our Food and Non-Alcoholic Index to 209.33 points.
The UK’s rate of inflation remained at 0.6 per cent in the year to August, according to data from the Office for National Statistics (ONS) on Tuesday.
This was driven by wine prices, which rose by less that they did a year ago. Tonight’s unemployment figures should be further proof that the Australian economy is one of the more structurally sound economies at present, with 15,000 jobs expected to have been added in the month of August.
The economy’s resilience has prompted some economists to up their growth forecasts for United Kingdom gross domestic product (GDP) as Brexit uncertainty eases.
“Indeed, we suspect that the MPC will likely stick to its very cautious assessment of the economy and fairly dovish policy outlook despite the latest more upbeat activity data”.
Advertisement
Analysts had assumed a weaker pound – which has fallen 10.5% against the dollar since just before the Brexit vote – would fan inflation as it pushes up manufacturers’ input costs.
