UK households face squeeze after surprise inflation jump to 2.7%

Dearer autumn clothing ranges boost CPI to six-month high despite a forecast fall

UK inflation unexpectedly rose to the highest level in six months in August, pushed up by the rising cost of items including theatre tickets, package holidays, and high street shops launching their new-season autumn clothing ranges.

The Office for National Statistics said the consumer price index (CPI) jumped to 2.7% last month from 2.5% in July, confounding economists' forecasts for the rate to fall to 2.4%.

Inflation is when prices rise. Deflation is the opposite - price decreases over time - but inflation is far more common.