Consumer Prices (Aug.)

The leap in CPI inflation from 2.0% in July to a nine-year high of 3.2% in August (consensus 2.9%, CE 3.1%) is the first step in a rise that may take inflation to 4.5% or above by November. But as inflation will fall back almost as sharply next year, we don’t think the MPC will raise interest rates until mid-2023.
Paul Dales Chief UK Economist
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6 August 2021
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