UK’s “Eat Out to Help Out” scheme boosts August inflation
Inflation in Britain was above a nine-year high in August, a result of the “Eat Out to Help Out” scheme that lowered restaurant food prices last year.
The Office for National Statistics showed a 1.2 percentage point rise in inflation, touching the highest monthly jump in 24 years since details records began. Economists predicted a reading of 2.9% in August.
Consumer prices climbed 3.2% in annual terms, lower than July’s 2.0% expansion, which was the highest rate since March 2012.
ONS statistician Jonathan Athow said the increase in inflation will only be temporary as this year’s restaurant and café prices soared.
Last year, the government, through its ‘Eat Out to Help Out’ scheme, gave a 50% discount of up to 10 pounds ($13.82) per head on meals from Monday to Wednesday to stimulate consumer spending. This contributed more than half of the 1.2 percentage point rise in inflation in August.