Inflation surges to 3.2pc in fastest monthly rise on record – live updates –

Good morning.

Inflation accelerated at its fastest monthly pace on record in August, as it shot up to 3.2pc, a huge leap from July’s level of 2pc to take it far above the Bank of England’s target.

The jump of 1.2 percentage points is the largest ever recorded increase in CPI’s annual rate since records began in 1997.

The steep increase risks fuelling fears of rocketing prices as the UK recovery takes hold as transport costs and prices at restaurants rose dramatically. Transport costs jumped by 0.87 percentage points in August as people travelled again after repeated lockdowns, while hospitality prices pushed inflation up by 0.65 percentage points, its highest ever contribution. 

But the Office for National Statistics said the spike will likely prove to be temporary, pointing to Rishi Sunak’s Eat Out to Help Out scheme last summer pushed the cost of dining out artificially low.

5 things to start your day 

1) Deliveroo offers free delivery to Amazon Prime members Amazon has waded into the takeaway apps war by giving members of its Prime subscription service free delivery through Deliveroo.

2) Bailey blasts Brussels over clearing power grab The EU risks severely damaging the financial system if it goes ahead with a raid on London’s currency clearing operations, BoE governor warns.

3) Dowden vows to protect Channel 4 in privatisation push The Culture Secretary will pledge today to protect the broadcaster’s public service remit as he defends the Government’s bid to privatise it.

4) Apple reveals new four new phones Company seeks to maintain its run of record iPhone sales with a series of new models that boost battery life and feature advanced cameras.

5) Fast-tracking lorry driver tests ‘risks more crashes’ Premiums may have to go up to pay for the increased risk, insurers say.

What happened overnight 

Asian shares fell on Wednesday as weak Chinese economic data reinforced worries about slowing growth globally as well as in the world’s second-biggest economy amid fraught nerves over a still-dominant pandemic and tapering of central banks’ stimulus.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.82pc, extending earlier losses after the release of the Chinese data, while Tokyo’s Nikkei shed 0.89pc, moving off a more than 31-year closing-high the day before.

A burst of data out of China showed businesses were grappling with the impact of localised lockdowns following sporadic Covid outbreaks, supply bottlenecks and high raw materials costs.

Retail sales grew at the slowest pace since August 2020 and missed analysts’ expectations, while industrial output also rose at a weaker pace from July, underscoring recent signs of slackening economic momentum in China and adding to expectations Beijing will offer more stimulus over coming months.

After the data, Chinese blue chips were down 0.73pc.

The Hong Kong benchmark shed 0.87pc dragged down by casino stocks as the gaming hub of Macau begins a consultation ahead of a closely watched rebidding of its multi-billion dollar casinos next year.

Shares of Wynn Macau at one point were down more than 30pc.

Coming up today

  • Corporate: Redrow (full-year results); Fevertree Drinks, Restaurant Group, Trustpilot Group, Tullow Oil (interims)
  • Economics: Consumer prices index (UK), retail prices index (UK); industrial production (US); retail sales (China), industrial production (China); labour cost (EU)

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