High energy bills cause inflation to rise again

Consumer prices index CPI annual inflation rose to 4.7 per cent in August, up from 4.4 per cent, as rises in gas and electricity bills took effect.

Electricity prices rose 18 per cent year on year, up from 12.6 per cent in July. Gas inflation soared to 27.7 per cent year on year in August, up from 12.9 per cent in July.

Two major energy suppliers increased their gas and electricity tariffs at the end of July.

Food inflation continued to move upwards, reaching a record 14.5 per cent on the year, up from 13.7 per cent in July. This was largely due to a rise in cereals and breads, particularly breakfast cereals and pizzas. Bread and cereals rose to 17.4 per cent on the year, up from 15.9 per cent in July.

Meat prices increased once again, reaching 17.1 per cent year on year, up from 16.3 per cent in July. The largest effect came from pork products.

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2008-09-16 00:00:00 © Moneyextra.com