UK inflation strikes nine-year peak as economy reopens

British annual inflation spiked in August to a nine-year peak on the reopening economy, while last year’s figure had been skewed by a restaurant discount scheme, data showed Wednesday.

The Consumer Prices Index (CPI) soared to 3.2 percent, the highest level since March 2012, the Office for National Statistics said in a statement.

That marked a record acceleration and compared with 2.0 percent in July, and comes after the Bank of England warned inflation would strike 4.0 percent this year — double its target — as a result of Covid fallout.

Global markets have seesawed this year over concerns that central banks will end pandemic support measures to tame inflation, but policymakers have insisted that the rising prices are temporary.