UK inflation surges to 3.25% with record jump

Up from 2.1% in July

The UK inflation rate rose to 3.2% in August from 2.1% in July, the biggest increase since records began in 1997.

The rate was driven primarily by restaurants and hotels, recreation and culture, and food and non-alcoholic beverages, according to the Office for National Statistics (ONS). However, the ONS also noted that part of the change is due to discounted restaurant and café prices in August 2020 as part of the government's Eat Out to Help Out scheme with the VAT cut and supply issues also playing a role. Transport also made a significant contribution, noted Laura Suter, head of personal finance at AJ Bell, with second-hand cars rising 18.4% since April this year, compared to a 1.4% rise in th...