Tweet
</span> 
Rises in the price of bread, cereals and vegetables helped to keep the inflation rate high
UK Consumer Prices Index (CPI) inflation remained unchanged in August at 3.1%, according to the Office for National Statistics (ONS).
It means the rate remains well above the Bank of England's 2% target, and it brings to an end a three-month period during which the rate had been falling.
The unexpectedly high rate was boosted by strong rises in airfare, clothing and food prices. Fuel prices fell.
Retail Prices Index (RPI) inflation slowed to 4.7%, down from 4.8% in July.
</div> Economists had forecast lower rates of inflation for August, with CPI expected at 2.9% and RPI at 4.6%.
Clothing prices rose at their fastest rate since 2001.
The news follows a warning from retailer Primark on Monday that rising cotton prices had forced it to raise prices in its stores.
The warning was echoed by department store Debenhams, who said on Tuesday that the entire clothes retail industry faced rising costs.
Food costs continued to rise, with bread, cereals and vegetables leading the way.
Wheat prices hit a 22-month high in July after rising more than 50% since the end of June.
Last month, Mervyn King, the governor of the Bank of England, had to write a letter to the chancellor of the exchequer explaining why the CPI inflation rate was still more than one percentage point above its 2% target.
He blamed temporary factors, including the return of VAT in January to 17.5%, past rises in oil prices and higher import prices as a result of the depreciation in the pound since the middle of 2007.
However, he said "there remains a significant probability that I will need to write further open letters to you in the coming months".
VAT is set to rise again, to 20%, in January next year, giving a further boost to headline inflation figures.
This article is from the BBC News website. ? British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
Rises in the price of bread, cereals and vegetables helped to keep the inflation rate high UK Consumer Prices Index (CPI) inflation remained unchanged in August at 3.1%, according to the Office for National Statistics (ONS).
It means the rate remains well above the Bank of England's 2% target, and it brings to an end a three-month period during which the rate had been falling.
The unexpectedly high rate was boosted by strong rises in airfare, clothing and food prices. Fuel prices fell.
Retail Prices Index (RPI) inflation slowed to 4.7%, down from 4.8% in July.
</div> Economists had forecast lower rates of inflation for August, with CPI expected at 2.9% and RPI at 4.6%.
Clothing prices rose at their fastest rate since 2001.
The news follows a warning from retailer Primark on Monday that rising cotton prices had forced it to raise prices in its stores.
The warning was echoed by department store Debenhams, who said on Tuesday that the entire clothes retail industry faced rising costs.
Food costs continued to rise, with bread, cereals and vegetables leading the way.
Wheat prices hit a 22-month high in July after rising more than 50% since the end of June.
Last month, Mervyn King, the governor of the Bank of England, had to write a letter to the chancellor of the exchequer explaining why the CPI inflation rate was still more than one percentage point above its 2% target.
He blamed temporary factors, including the return of VAT in January to 17.5%, past rises in oil prices and higher import prices as a result of the depreciation in the pound since the middle of 2007.
However, he said "there remains a significant probability that I will need to write further open letters to you in the coming months".
VAT is set to rise again, to 20%, in January next year, giving a further boost to headline inflation figures.
This article is from the BBC News website. ? British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.