The UK received a rare flurry of positive economic news in mid-August when the Office for National Statistics announced that wage increases had gone up at a record rate, that inflation had fallen to 6.8 per cent and that food prices had begun to climb down.
While those might have suggested the cost of living was finally easing, the positivity masked the fact that core inflation – which removes volatile food and energy prices from the equation – remained stubbornly unchanged at 6.9 per cent, leading some experts to warn that any gains would be “swallowed up” by higher borrowing costs.
