Live Updates > Live Update Details
2026-09-16 18:40:11
[UK Inflation Rises, Adding Uncertainty to Bank of England Policy Path] ⑴ Data released by the UK Office for National Statistics on Wednesday showed that the Consumer Price Index (CPI) rose 3.1% year-on-year in August, up from 2.9% in July, indicating renewed inflationary pressure. ⑵ On a monthly basis, the CPI rose 0.5% month-on-month in August, compared to 0.3% for the same period in 2025, showing a strengthening month-on-month momentum. ⑶ The chief economist at the UK Office for National Statistics pointed out that a sharp rise in petrol and diesel prices was the main driver of the August inflation rebound, with rising long-haul airfares also contributing. ⑷ The head of research at the British Chambers of Commerce commented that the 3.1% CPI reflects the worrying price pressures currently facing the UK economy. ⑸ The Chamber's latest forecast suggests that the CPI may rise further in the last few months of the year due to oil price volatility and the ongoing Middle East conflict, posing an upward risk to domestic food costs. ⑹ The unexpectedly strong inflation data may cool market bets on a Bank of England rate cut, potentially providing some short-term support for the pound, but uncertainty about the economic outlook is also rising simultaneously.
