Inflation remains unchanged as air fares offset petrol price falls

It’s held steady at 2.2% in the year to August

UK inflation remained unchanged at 2.2% last month but price pressures picked up pace in the key services sector as air fares jumped higher, according to official figures.

The latest data from the Office for National Statistics (ONS) showed inflation has remained above the 2% target for the second month in a row, after rising for the first time this year in July.

The ONS said services sector inflation jumped to 5.6% in August from 5.2% in July as air fares rose across European routes.

This offset falls in prices at petrol pumps.

The figures come ahead of the Bank of England’s next interest rate decision on Thursday.

Grant Fitzner, chief economist at the ONS, 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.”

Published: 18/09/2024 by Radio NewsHub