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Economists at wealth management firm Investec predict UK inflation will dip to 2.1%, thanks to a drop in fuel prices.
But Sandra Horsfield, an economist at Investec, suggests hotel prices may have risen in August:
“Similarly, to the extent the jump and then fall in hotel price inflation in June and July this year was indeed linked to temporary extra demand for accommodation for the first UK leg of Taylor Swift’s Eras tour, the second leg of that tour falling into August could have boosted hotel and thereby services price inflation once more.”
The figures are set to reveal a marked jump in services inflation – covering prices in areas such as hotels, package holidays, hospitality and culture – with a possible impact of the last leg of Taylor Swift’s UK tour.
Economists are pencilling in a rise in services inflation to 5.6% in August, up from 5.2% in July.