UK’S INFLATION SPIKES TO HIGHEST RATE IN 9 YRS AS FOOD PRICES RISE

Thu 16 September 2021:

The annual inflation rate in the United Kingdom increased by 3.2 percent, the highest level since 2012, signaling that food, gasoline, and energy prices could overheat the economy. The Office for National Statistics (ONS) in the UK announced on September 15 that consumer prices had increased by 2% since July, the largest yearly increase since March 2012.

Higher oil prices, shipping issues, and even component shortages for vehicles and other commodities all contributed to an increase in inflation in various countries. Inflation in the eurozone reached 3% last month, the highest level in almost a decade.

ONS said in a statement on Wednesday, “The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 3.0% in the 12 months to August 2021, up from 2.1% in the 12 months to July.”

The increase of 0.9 percentage points is the greatest ever recorded in “the CPIH National Statistic 12-month inflation rate series, which began in January 2006; nonetheless, this is likely to be a transitory adjustment,” according to the UK’s largest independent provider of official statistics.

The UK data may have also been omitted from the Boris Johnson-led government’s Eat Out to Help Out scheme, according to the Sputnik article. In August 2020, the scheme, which was implemented to combat the effects of the COVID-19 pandemic on the hotel industry, provided diners a discount on meals.

Meanwhile, the Bank of England has predicted that inflation will reach 4% in 2021, blaming rising prices on the pandemic’s restrictions. Because of the lack of new models, second-hand car prices have risen by more than 18 percent since April.

“In the 12 months to August 2021, the Consumer Prices Index (CPI) rose by 3.2 percent, up from 2.0 percent in July: the increase of 1.2 percentage points is the largest ever recorded in the CPI National Statistic 12-month inflation rate series, which began in January 1997; this is likely to be a temporary change,” according to the ONS.

The Consumer Prices Index including owner occupiers’ housing costs grew 3% in the year to August 2021, up from 2.1% in July.

Driven by falls last August due to the Eat Out to Help Out scheme, the rise will likely be temporary https://t.co/yHZcoQVSVd pic.twitter.com/jE0R9TT3x3

— Office for National Statistics (ONS) (@ONS) September 15, 2021

UK house prices up by 8%

ONS, in a separate statement, said that the average house prices in the UK increased by 8% over the year to July 2021 but down from 13.1% in June 2021. It added, “the average UK house price was £256,000 in July 2021, which is £19,000 higher than this time last year, following the record high of £265,000 in June 2021.” ONS also cited the latest house price data published on the official website of the British government by the HM Land Registry for July 2021.

ONS stated, “Because of the impact of the coronavirus (COVID-19) pandemic on both the number and supply of housing transactions, we might see larger revisions to the published House Price Index (HPI) estimates than usual.”

“Fewer transactions are available than expected for the July 2021 estimate. As a result, there may be increased volatility in this month’s estimates, particularly at the lower geographical levels where transaction volumes are smaller,” it added.

UK average house prices grew 8.0% in the year to July 2021, down from 13.1% in June.

The slowdown was due to changes in the stamp duty holiday conditions https://t.co/DugWJHNmbD pic.twitter.com/Olj6I41dRV

— Office for National Statistics (ONS) (@ONS) September 15, 2021