CPI inflation in August was 3.2% having risen from low levels last year. The Bank of England expects the increase in inflation to be temporary, with inflation returning to its 2% target level through 2022 and 2023.
Since the operationally independent Bank of England took on responsibility for inflation, it has averaged around the 2% target. The Government remains committed to price stability.
We understand that higher prices increase the costs of living, and that is why this Government has taken direct action to help people manage the cost of living by increasing the National Living Wage, taken action on the cost of fuel and energy bills and increasing the Local Housing Allowance.