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    Home»Business»Food inflation at 18 month high – and experts predict worse to come | Money News
    Business

    Food inflation at 18 month high – and experts predict worse to come | Money News

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    Inflation has remained relatively high, meaning goods are becoming more expensive, particularly the cost of food, official figures show.

    The rate of price rises remained at 3.8% in August, the same as in July, according to data from the Office for National Statistics (ONS).

    The figure is exactly as forecast by economists polled by the Reuters news agency.

    Money blog: Here’s what inflation figure means for you

    Food and non-alcoholic drinks price rises, however, accelerated to 5.1%, far higher than the headline rate and other measures of inflation.

    It’s the first time such a high has been reached in 18 months.

    chart visualization

    Prices are expected to continue rising, with the Bank of England forecasting the rate will hit 4% in September.

    Such a high is double the central bank’s 2% target, meaning interest rates – and the cost of borrowing as a result – could remain higher for longer.

    Behind the headline figure

    Other measures of inflation slowed.

    Core inflation, which strips out volatile food and energy prices, and is closely watched by the rate-setters at the Bank of England, fell back to 3.6% from 3.8% last month.

    This breaking news story is being updated and more details will be published shortly.

    Please refresh the page for the fullest version.

    You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow us on WhatsApp and subscribe to our YouTube channel to keep up with the latest news.

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