Inflation was at 3% in the year to August, up from 2.1% in July, according to the latest Consumer Prices Index.

It's the largest increase since the current method of calculation began in January 2006.

But the figures are affected by the discounted restaurant and café prices in August 2020 because of the government's Eat Out to Help Out scheme and, to a lesser extent, reductions in VAT across the hospitality sector.

The largest contributor to the inflation figure was transport (up 0.87%) with a further large upward trend from restaurants and hotels (0.65%), housing and household services (0.65%), and recreation and culture (0.28%).

On a monthly basis, the CPI increased 0.7% in August 2021, compared with a fall of 0.4% in August 2020.