UK unemployment rise confirms grim outlook

The news follows a spate of data over the past two weeks that showed falling house prices, slumping car sales, dropping levels of industrial production and rising inflation.

The UK consumer price index this week hit a higher-than-expected 5.2 per cent, fuelled mostly by sharp increases in the prices of utilities that fed into economic data more quickly than had been expected.

The latest data from the Office for National Statistics showed a 0.5 per cent rise in unemployment, to 5.7 per cent, for the three months to the end of August.

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