Daily consumables like fruits and vegetables turned costlier during the month with inflation print coming at 5.29 per cent and 6.16 per cent, respectively as against 2.83 per cent and (-) 3.57 per cent in July, according to the data released by the Central Statistics Office (CSO). Meanwhile, the cost of motor fuels and air fares had a "large upward effect", with petrol prices rising 1.8p per litre.
There was upward pressure on clothing and fuel prices for the month and there was wider upward pressure on finished goods prices for the month.
The gain came after the biggest rise in clothes and footwear prices in nearly three decades, which surged 2.4% on the month and 4.6% compared with a year earlier.
He explains that the September numbers used to determine the annual increases in pension and benefit levels are likely to exceed both wage inflation, now running at 2.1%, and the 2.5% underpin used for the triple lock.
The weaker level of the pound was behind the continued rise in clothing prices, as it's become more expensive for importers to bring clothing to the United Kingdom from overseas. "All in all, I see more deflationary forces than inflationary in the world economy at present". The faster than expected pace of inflation helped push the pound higher, as it suggests a Bank of England (BOE) rate hike will come sooner than previously expected. The MPC will announce its latest interest rate decision on Thursday, which is broadly anticipated to see rates remain on hold at 0.25%.
The rise compares with a 3.20 per cent increase forecast by economists in a Reuters poll of 40 economists.
"Over the long term, inflation is rarely a country-specific phenomenon, especially for developed, open, market economies".