UK inflation rate up again

The rate of inflation continued to climb last month, official figures revealed today, as utility bill hikes hit a two-year high and clothing costs saw their biggest increase on record.

The consumer prices index (CPI) rate of inflation rose to 4.5% in August, up from 4.4% in July, the Office for National Statistics (ONS) said. This was equal to the CPI rate in May and was last higher in September 2008.