The Brexit price squeeze is back as UK inflation unexpectedly jumps for a second month
- CPI inflation increases to 2.7% in August, up from 2.5% in July, confounding economists forecasts.
- Inflation has now unexpectedly risen for two consecutive months.
- Goods increasing in price in the months including theatre tickers, clothing, and sea fares, the Office for National Statistics said.
Inflation in the UK unexpectedly jumped in August, surprising forecasters who had expected the rate of price increases to fall.
The Office for National Statistics (ONS) said on Wednesday that consumer price inflation (CPI), the most watched measure of UK inflation, increased to 2.7% in August, up from 2.5% in the previous month. CPI had been expected by economists polled prior to the release to drop to 2.4% during the month.
CPIH, the ONS' preferred method of measuring inflation was also higher in the month, hitting 2.4%, up from 2.3% in July.
"Consumers paid more for theatre shows, sea fares and new season autumn clothing last month. However, mobile phone charges, and furniture and household goods had a downward effect on inflation," Mike Hardie, the ONS' head of inflation said in a statement.
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