UK inflation falls sharply on back of eat out to help out scheme

Restaurant subsidy scheme introduced because of Covid-19 crisis has dramatic effect

UK inflation dropped sharply to 0.2% in August after the government’s eat out to help out scheme pushed down restaurant and cafe prices.

The fall in the annual consumer prices index (CPI) last month followed a rise of 1% in July, illustrating the dramatic influence on prices of the restaurant subsidy scheme that operated for a month to the end of August.

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