CPI inflation increased to 4.5 per cent in August.
The latest statistics from the Office for National Statistics (ONS) show that inflation rose by 0.1 per cent in August, spurred by clothing and footwear prices.
An increase in energy bills is also expected to have contributed to this latest increase in the rate of inflation.
This is the seventh consecutive quarter that the rate of inflation has remained above the Bank of England’s target of two per cent.
The news follows the announcement that National Savings and Investments (NS&I) have withdrawn their inflation linked savings certificate, citing excessive levels of sales as the reason.
The rise in inflation will be a blow to those over 55 according to Age UK, whose Silver RPI demonstrates that over 55s experience price rises at a disproportionally higher rate than headline inflation – seeing additional annual costs of as much as £918 since 2008.
Commenting, Gordon Morris, managing director at Age Uk said: “More has to be done to recognise the reality of money in older age and to help people manage their costs.”
