UK CPI dipped for the first time since 2021 in August, but underlying inflation forces will keep pressure on the Bank of England to further accelerate its interest rate hikes, the industry has warned.
Headline inflation eased back from 40-year highs to 9.9%, with the slower increase driven by lower petrol prices. Despite this, core inflation, which strips out volatile food and energy prices, continued to rise, reaching a 30-year high of 6.3%. Ben Laidler, global markets strategist at social investment network eToro, said that today's lower-than-expected UK inflation figure "served up a welcome surprise, providing a small glimmer of positivity for our faltering economy". Nicholas Hyett, investment analyst at Wealth Club, said that while the moderation in inflation is welcome, he not...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes