UK inflation rises to 2.9%

The pound has hit a one-year high after UK inflation climbed to its highest rate in more than five years.

The Consumer Price Index showed inflation jumped to 2.9 per cent in August – compared to 2.6 per cent from the previous month.

More expensive clothing and a rebound in global oil prices were said to be behind the price rises.

Core inflation – which strips out volatile energy and food prices – also rose.

The Office for National Statistics has said the slump in sterling since last year’s Brexit vote continues to have a powerful impact on domestic UK prices.