Inflation jumps to 2.9% as petrol and clothing prices rise

Bigger-than-expected inflation hike puts pressure on the Bank of England to raise interest rates

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UK inflation rose to 2.9% in August on the back of rising fuel and clothing costs, increasing pressure on Bank of England policymakers who have held interest rates steady for more than a year.

The Office for National Statistics said the inflation rate rose from 2.6% in July, in part due to the drop in the value of sterling after the Brexit referendum, which nudged up prices for imported goods including fuel and clothing. The last time inflation was higher than 2.9% was in April 2012.

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