Inflation on the up

Inflation under the Retail Prices Index (RPI) was up to 5.2% in August from 5.0% the previous month, according to the Office for National Statistics.

“Clothing and footwear” was the main factor in the rise. Inflation in this group — at 13.2% — was running at its highest level for 31 years.

Under the Consumer Prices Index (CPI), inflation rose to 4.5% in August from 4.4% the previous month. The CPI measure is the measure used by the coalition government to update state benefits and public sector pensions.