UK inflation rises to 3.1%, but oil-driven pressures may matter more ahead
📌 UK CPI rose to 3.1% year-on-year in August from 2.9% previously, above the Bank of England’s earlier 2.8% forecast. However, the figure matched market expectations, leaving sterling largely unchanged.
🔎 Price pressures were still concentrated in energy and transport. Core CPI remained at 2.6% for a fourth consecutive month, while services inflation held at 3.4%, suggesting no clear sign yet of a broader domestic inflation rebound.
⚠️ Producer prices may be more important for the outlook, with input prices up 6.1% and output prices rising 3.7% year-on-year. Higher crude oil costs are adding further pressure across the production chain.
⏱️ August CPI data were collected before the sharp rise in oil prices during September, meaning the latest energy shock has not yet been fully reflected. Attention now turns to the BoE meeting on September 17 and its assessment of inflation risks ahead.
#UKInflation $LSK
📌 UK CPI rose to 3.1% year-on-year in August from 2.9% previously, above the Bank of England’s earlier 2.8% forecast. However, the figure matched market expectations, leaving sterling largely unchanged.
🔎 Price pressures were still concentrated in energy and transport. Core CPI remained at 2.6% for a fourth consecutive month, while services inflation held at 3.4%, suggesting no clear sign yet of a broader domestic inflation rebound.
⚠️ Producer prices may be more important for the outlook, with input prices up 6.1% and output prices rising 3.7% year-on-year. Higher crude oil costs are adding further pressure across the production chain.
⏱️ August CPI data were collected before the sharp rise in oil prices during September, meaning the latest energy shock has not yet been fully reflected. Attention now turns to the BoE meeting on September 17 and its assessment of inflation risks ahead.
#UKInflation $LSK
