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The UK Consumer Prices Index (CPI) 12-month rate came in at 2.7% in August, firmer from July’s 2.5% and beating the 2.4% print expected, the UK Office for National Statistics (ONS) reported on Wednesday.  

Meanwhile, the core inflation gauge (excluding volatile food and energy items) arrived at 2.1% y/y versus 1.9% booked in July while also beating the consensus forecast of 1.8%.

The monthly figures showed that the UK consumer prices jumped to 0.7% in August, bettering 0.5% expectations and 0.0% previous.

Main Points (via ONS):

“Rising prices for a range of recreational and cultural goods and services, transport services and clothing produced the largest upward contributions to the change in the rate between July and August 2018.

Partially offsetting downward contributions came from furniture and household goods, and telecommunications; prices for these rose between July and August 2018 but by less than a year ago.”