Inflation rises to 4.7%

Inflation has risen to 4.7% in August from 4.4% in July partially due to mortgage arrangement fees.

The Consumer Prices Index has risen significantly as a result of mortgage arrangement fees which have fallen by less than last year.

Other pressures pushing up inflation include household services like electricity and gas bills and a rise in the cost of food – specifically breakfast cereal, pizzas, meat and fruit.

But the average price of petrol has fallen by 5.5p to 113.3p from August last year.

The Retail Price Index inflation fell to 4.8% from 5% in July.

There was a large downward influence on RPI from housing as a result of rising mortgage interest payments and house price depreciation.

Mortgage interest payments and house price depreciation are both excluded from CPI calculations.