Cheaper hotel rooms, summer clothing bargains and cuts in the cost of alcohol helped peg the UK’s annual inflation rate at 0.6% last month. UK inflation stays at 0.6%, but import prices rise sharply - business live Read moreMike Prestwood, the ONS’s head of inflation, said: “Fuel costs falling more slowly than a year ago as well as rising food prices and air fares all pushed up CPI in August, but these were offset by hotels, wine and clothing leaving the headline rate of inflation unchanged. The ONS said so-called core inflation, which strips out food, fuel, alcohol and tobacco, also remained unchanged last month, at 1.3%. Meanwhile, the cost of industry’s fuel and raw materials rose by 7.6% in the year to August, up from 4.1% in July. Indeed, there were signs of these factors starting to make their way through the inflation pipeline.”

Source: The Guardian September 13, 2016 08:34 UTC