UK Inflation Accelerates At Record Pace To 3.2%

UK consumer price inflation accelerated at a record pace in August, surpassing expectations, preliminary data from the Office for National Statistics showed Wednesday.

The consumer price index rose 3.2 percent year-on-year following a 2.0 percent climb in July. Economists had forecast 2.9 percent inflation.

The 1.2 percentage points increase was the largest ever recorded in the 12-month rate series that began in January 1997, the ONS said.

The steep change is likely to be temporary, the agency added.

Compared to the previous month, the CPI rose 0.7 percent in August, which was faster than the 0.5 percent increase economists had forecast.

The core inflation, which excludes prices of energy, food, alcoholic beverages and tobacco, accelerated sharply to 3.1 percent from 1.8 percent in July. Economists had forecast 2.9 percent inflation.

The core CPI rose 0.7 percent from the previous month.

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