The UK inflation rate rose another 0.3% from July to August—the joint highest it's been in 5 years.
The increase comes after news that the value of the sterling has fallen so low, it’s on course for parity with the euro.
Higher Living Costs
A recent rise in living costs across the board have been contributing factors to higher inflation rates, with the recent rebound in oil expenses having a huge impact on fuel costs. The price of petrol jumped to 115.7p a litre throughout August and diesel reached highs of 117.6p
Prices of clothing and household equipment have also experienced a recent jump, due to rising import fees. A 4.6% year-on-year increase has led to costs reaching their highest level since records began.
A rise in the national living wage is needed to reflect the current price of living costs, though an increase in interest rates from banks seems more likely.
Keep up to date with the news on inflation rates with the latest from BBC Business.