LONDON, September 15 (Hfrance.fr) - UK inflation hit a nine-year high last month after the biggest monthly rise in the annual rate in at least 24 years old, in large part due to a one-time boost mirroring the "Eat Out to Help " program that brought down restaurant meal prices last year.
Consumer prices rose 3.2% in annual terms last month after rising 2.0% in July, the highest rate since March 2012, a declared the Office for National Statistics.
The percentage of 1.2 The one-time increase in the annual inflation rate in space month marked the largest such increase since detailed surveys began in 1997.
An Hfrance.fr poll of economists indicated a reading of 2.9% for August.
" Much of this (increase) is likely to be temporary as restaurant and cafe prices dropped significantly last year due to the 'Eat Out to Help Out ' program, so that prices have increased this year "said Jonathan Athow, ONS statistician.
The initial market reaction to the data was limited .
In August 2020, the government offered diners a 50% discount of up to 10 pounds ($ 13.82) per person on meals Monday through Wednesday to jumpstart the economy and encourage people to spend money again after the pandemic lockdown.
Restaurant prices accounted for more than half of the 1.2 percentage point increaseage of headline inflation last month.
Nonetheless, the larger than expected rise in inflation will be noticed by Bank policymakers from England wondering whether to end the stimulus package launched at the height of the COVID -19 pandemic last year.
" Higher inflation will inevitably raise questions for the Bank of England about the timing of tightening monetary policy and interest-eating hikes to contain long-term inflationary risks "said YaelSelfin , Chief Economist at KPMG UK.
"However, any tightening now risks collapsing the recovery before it has a chance to settle in, so a delay until the middle of next year is likely. "
(1 $ = 0 , 7235 pounds) Reporting by Andy Bruce; Assembly byKate Holton
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