UK inflation unchanged in August

The UK Consumer Prices Index (CPI) was unchanged in August at 3.1%, according to the Office for National Statistics (ONS).

Economists had predicted CPI inflation would fall to 3% and the figures bring to an end a three-month period which saw consecutive falls. The unexpectedly high rate was boosted by strong rises in airfare, clothing and food prices, while fuel prices fell. Meanwhile, the Retail Prices Index (RPI) slowed to 4.7%, down from 4.8% in July. World First chief economist Jeremy Cook says: "This figure will exacerbate divisions in the MPC with Andrew Sentance likely to only increase the volume of his calls for interest rate rises as soon as possible. "Unfortunately the recovery is still to...