UK inflation unexpectedly hit a six-month high of 2.7 percent in August, according to the latest Office of National Statistics (ONS) figures.

This proved above Economist expectations of UK inflation coming in at 2.4 percent.

Despite the rise, wages are still outpacing inflation, with wages excluding bonuses up 2.9 percent in the three months to July.

The rise was attributed to higher prices in transport, clothing and goods.

Moreover, the ONS said that UK house prices rose at the slowest pace in nearly five years, with the stagnating property market in the capital dragging down growth.

House prices in London fell 0.7 percent year-on-year in July, marking the biggest drop since September 2009.

Mike Hardie, head of inflation at the ONS, said: “Consumers paid more for theatre shows, sea fares and new season autumn clothing last month.

“However, mobile phone charges, and furniture and household goods had a downward effect on inflation.”

The figures sent the pound sterling to an eight-week high against the greenback, with traders expecting an interest hike to be more likely.

Last month the Bank of England said it expected UK inflation to hit 2.4 percent in August, down from 2.5 percent in July.

The monetary policy committee are set to meet on the 1st of November later this year.