Bri­tish in­fla­tion holds steady at 0.6pc

The Myanmar Times - - International Business -

BRI­TAIN’S an­nual in­fla­tion rate held steady last month, of­fi­cial data showed, giv­ing lit­tle in­di­ca­tion that the post-Brexit col­lapse in the pound had lifted prices.

The 12-month Con­sumer Price In­dex rose by 0.6 per­cent in Au­gust, as ris­ing food and trans­port prices were off­set by the falling cost of cloth­ing, wine and ho­tels, the Of­fice for Na­tional Sta­tis­tics (ONS) said.

CPI had also risen by 0.6pc in the year to July, the ONS added. Mar­ket ex­pec­ta­tions had been for an Au­gust in­crease of 0.7pc.

There was “lit­tle sign” of the plunge of the pound to 31-year lows, af­ter the shock Brexit vote be­ing passed through to con­sumer prices.

The fall in the value of the pound makes Bri­tish goods cheaper to ex­port, but makes im­ported goods and prod­ucts more ex­pen­sive.

“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,” said Mike Prest­wood, head of in­fla­tion at the ONS.

“Raw ma­te­ri­als costs have risen for the sec­ond month run­ning, partly due to the falling value of the pound, though there is lit­tle sign of this feed­ing through to con­sumer prices yet.”

Photo: EPA

The Bri­tish pound has plunged in value against most cur­ren­cies since the June 23 de­ci­sion to leave the Euro­pean Union.

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