Prices are continuing to rise. Consumer inflation stayed at 3.8 per cent last month – matching the figure recorded in July and nearly double the Bank of England’s 2 per cent target.

This morning’s figures on CPI, released by the Office for National Statistics (ONS), were in line with the expectations of markets and pundits. Air fares, which spiked in July due to the summer holidays, were significantly down compared with last year, which offset a rise in fuel, meaning the pace of inflation did not pick up.

There is a tendency in economic reporting to say that because a reading has come in line with forecasts, then it is good news. But the truth is anything but. Food inflation has increased for the fifth month in a row. It is now at its highest level in more than a year at 5.1 per cent. Ve

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