Inflation takes a tiny breather in August, but the battle is far from over
In August, annualised inflation measured by the Consumer Price Index (CPI) slid to 9.9%, a touch lower than the 10.1% seen in July. It’s a small step – like taking a short breath before a marathon – but it’s still a reminder that the heat on our wallets is far from cooling.
July vs. August: The big numbers
- Inflation: 9.9% (August) vs. 10.1% (July)
- Fuel prices: 32.1% rise in August vs. 43.7% in July
- Food: 13.1% jump in August
- Electricity: 54.0% surge in August
- Gas: 95.7% climb in August
Where’s the heat coming from?
The surge in motor fuel prices barely made it through the August heatwave – they’re still climbing, but a little less steeply. Meanwhile, everyday essentials like food, electricity, and gas have taken the front seat in the pricing parade, pulling the inflation bar up with a stronger grip.
Thoughts from the Insight Desk
Nicholas Hyett, Investment Analyst at Wealth Club puts the numbers in perspective:
- “Inflation’s dip in August is fine, but it’s still too early to cheer.”
- “Food and heating costs keep rising, which eats into people’s disposable income.”
- “When financial carts get tight, everyone’s day‑to‑day choices shift: no restaurant nights, car hunting, or trip planning for now.”
- “The shape of inflation is worrying – the poor bear the brunt because they spend a larger slice of their pocket on essentials.”
- “Government caps on energy will help a bit, but we might need more winter support if the spikes resume.”
- “Sterling’s ticked and is being driven by the state of the UK economy and how much is being spent.”
- “Better spending only makes things trickier—it’s a tough call.”
- “Today’s modest slowdown might just be a calm brief before next waves start again.”
Stay in the loop!
Keep your finger on the pulse of inflation and get real‑time updates straight to your device. Subscribe now and never miss a beat.
