UK August CPI hits historical record

British consumers faced a record increase on prices in the month of August, driven by higher prices in computer games, according to a report published by the Office for National Statistics.

CPI has jumped 2.5% on year-on-year basis, slightly higher than July´s 2.4%. August numbers equal the highest increase in consumer prices since records began in 1997.

The Bank Of England decided to raise interest rates in August following the energy prices augment in the June CPI rate. Today´s figures might inspire a further rate hike to 5% in November ahead of its next quarterly economic projections..

On a month-on-month basis, prices increased 0.4% from July, when experts expected a 0.3% rise. In the previous prices dropped by 0.1%.

Recreation and culture are to blame in the CPI increment, according to the statistics office, games, toys and hobbies rose their prices in a larger extent than last year. There was also an upward push by equipments for sport and open air recreation, and a large influence by furnishing, clothing and footwear.