UK inflation remained unchanged last month, above the UK’s official target. The consumer prices index, which tracks cost changes across the economy, rose by 2.2% in the year to August, data released by the Office for National Statistics shows. That means prices are rising a little faster than the Bank of England’s target of 2%. On a monthly basis, inflation rose by 0.3% in August 2024, the same rate as a year earlier. The ONS said the largest upward contribution to the monthly change in inflation came from air fares, which rose this year but fell a year ago. The largest offsetting downward contributions came from motor fuels, and restaurants and hotels. The ONS chief economist, Grant Fitzner, said: “Inflation held steady in August as various price fluctuations offset each other. “The main movements came from air fares, in particular to European destinations, which showed a large monthly rise, following a fall this time last year. "This was offset by lower prices at the pump as well as falling costs at restaurants and hotels. Also, the prices of shop-bought alcohol fell slightly this month, but rose at the same time last year." Underlying inflation across the UK has risen. The core CPI, which excludes energy, food, alcohol and tobacco, rose by 3.6% in the 12 months to August 2024, up from 3.3% in July. Economists had expected a smaller rise in core inflation, to 3.5%. Meanwhile, Tupperware, the manufacturer of food storage containers, has filed for bankruptcy protection. Tupperware has voluntarily begun Chapter 11 proceedings in the US bankruptcy court for the district of Delaware. Laurie Ann Goldman, the president and chief executive officer of Tupperware, blamed a “challenging macroeconomic environment” (costs of raw materials have jumped, and the pandemic boom in home cooking has faded, hurting sales). The agenda • 9.30am BST: UK house prices and rental costs data • 10am BST: eurozone inflation report for August (final reading) • 7pm BST: Federal Reserve sets US interest rates • 7.30pm BST: Federal Reserve press conference We’ll be tracking all the main events throughout the day ...
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