UK inflation unexpectedly exceeds 3% on airfares

UK inflation unexpectedly exceeded the government’s 3% limit for a sixth month in August as higher costs of items from airfares to food stoked price pressures in the economy. Consumer prices rose 3.1% from a year earlier, the same pace as in July, the Office for National Statistics said on Tuesday in London. The median forecast of 30 economists in a Bloomberg News survey was for a reading of 3%. On the month, prices increased by 0.5%. The persistence of faster inflation may exacerbate the split on the Bank of England’s Monetary Policy Committee to tame prices while other officials say more stimulus may be needed.

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