LONDON: British inflation was unchanged at 2.2 percent in August, official data showed Wednesday, fuelling expectations that the Bank of England will not cut interest rates again at its meeting this week.
The Consumer Prices Index was at the same level as in July, the Office for National Statistics said.
The steady annual inflation rate cemented analyst expectations that the central bank would likely avoid cutting rates again at the end of its regular two-day policy meeting on Thursday.
The BoE trimmed borrowing costs in August for the first-time since the onset of the Covid pandemic in early 2020 and after UK inflation retreated from four-decade highs, briefly meeting its two-percent target in May before edging back up.
UK inflation slows to central bank’s 2% target
“Years of sky-high inflation have taken their toll; and prices are still much higher than four years ago,” Darren Jones, a senior official at the UK Treasury, said in response to Wednesday’s data.
The main inflationary movements in August came from large monthly rises to airfares, particularly for European destinations, noted Grant Fitzner, chief economist at the ONS.
“This was offset by lower prices at the pump as well as falling costs at restaurants and hotels,” he added.
Comments
Comments are closed for this article.