The headline reading for consumer price inflation in the U.K. surged to a fresh record high of 4.7% from 4.4% in July as food prices rose at a record pace of 14.5%. Furthermore, the core measure of inflation ticked higher to 2.0% from 1.9%, which suggests that upward prices pressures may increase over the coming months. However, with oil prices tumbling lower, upside inflation risks could subside over the coming months as economic activity stalls.
