Commenting on inflation figures, published by the ONS today, Debapratim De, senior economist at Deloitte, said:

“August’s annual inflation figure overstates price rises due to base effects, but the monthly inflation estimate, which has hit a three-year high, does not. The higher-than-expected monthly rise in inflation and input prices testifies to supply shortages, building up further price pressure.

The data seem consistent with the Bank of England’s expectations of some modest tightening in the coming years. If UK growth continues as currently forecast, we are likely to see the first rate rise by next summer.”