UK inflation steady at 3.8% as BoE set to hold rates
UK inflation remained unchanged at 3.8% in August, according to the Office for National Statistics (ONS), matching July’s figure and analysts’ expectations. The data comes just ahead of the Bank of England’s policy meeting on Thursday, where markets widely expect the central bank to hold interest rates at 4% after cutting them last month to their lowest in 2.5 years. The BoE has forecast inflation to peak at 4% in September, double its 2% target, suggesting a “higher-for-longer” rate environment. Lindsay James, investment strategist at Quilter, said the figures “will keep pressure on households already contending with elevated living costs and on businesses facing squeezed demand.” The ONS noted that airfares fell in August after a sharp July jump, but petrol, diesel and food prices continued to climb. The government is also battling weak growth and jobs concerns. Official data […]
