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UK inflation remains nearly double target ahead of expected interest rate hold

Inflation in the UK held steady at 3.8 per cent in the year to August, official figures showed Wednesday, a day before the Bank of England is widely expected to keep interest rates on hold. Though inflation remains nearly double the Bank of England's target rate of 2 per cent, most economists had anticipated a modest increase in August

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Representational Image. File Pic

Representational Image. File Pic

Inflation in the UK held steady at 3.8 per cent in the year to August, official figures showed Wednesday, a day before the Bank of England is widely expected to keep interest rates on hold.
The Office for National Statistics found food and drink prices rose for the fifth month in a row, but airfares fell sharply after a big spike in July.
Though inflation remains nearly double the Bank of England's target rate of 2 per cent, most economists had anticipated a modest increase in August.

Stubbornly high inflation has been one of the reasons why the Labour government's poll ratings have fallen sharply since it came to power in July 2024.
Treasury chief Rachel Reeves will be hoping inflation starts to drop down towards target, as many forecasters predict, in the year to come as it will relieve some of the cost-of-living pressures that are hurting households and undermining the government's support.

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