No change on inflation as prices up

UK INFLATION remained unchanged last month but food and drink price rises have accelerated for the fifth month in a row, new official figures show.

- ANNA WISE

The rate of Consumer Prices Index (CPI) was 3.8% in August, the same as July, the Office for National Statistics (ONS) said.

This was the level that most economists had been expecting for the month, and it means overall inflation remains elevated above the UK's 2% target rate.

Airfares coming down after a spike the previous month helped offset petrol and diesel prices rising in August, the ONS said.

Restaurants and hotels also put upward pressure on the overall rate as demand for meals out and overnight stays stayed high amid a string of popular concerts around the UK.

However, the rate of food and drink inflation rose to 5.1% in August, from 4.9% in July, as shoppers continued to face higher prices for items at the till.