UK sees record jump in annual inflation

Inflation in the United Kingdom rose to 3.2 percent in the past 12 months through August, a Wednesday report from the Office for National Statistics said.

This figure is up from 2 percent in July, marking the largest increase seen since the Consumer Prices Index began measuring inflation in 1997, the report said.

The report added that “this is likely to be a temporary change” amid the recovery from the coronavirus pandemic.

The current level is well above the 2 percent target “to keep inflation low and stable,” according to the Bank of England.

Because the increase is more than 1 percentage point, Andrew Bailey, the governor of the Bank of England, will have to officially explain it in a letter to Treasury chief Rishi Sunak, in accordance with the Bank of England’s policies, according to The Associated Press.

Andy Haldane, the Bank of England’s outgoing chief economist, said in a speech at the Institute of Government in June he expected inflation to near 4 percent by the end of the year.