UK Inflation Remains Static During August

The underlying rate of UK inflation remained unchanged during August at 2.9% with cheaper holidays offsetting higher petrol and clothing costs.

The latest figures from The Office Of National Statistics show that underlying inflation has now been above the Government’s 2.5% target for almost a year.

The headline rate of inflation, which includes mortgage and interest payments, dropped to 2.9% last month, down from 3.1% in July.

The Harmonised Index of Consumer Prices, which the Government is set to begin targeting, showed inflation rising to 1.4% in August from 1.3% in July.

The all items Retail Prices Index for August 2003 was 181.6.

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