In August, UK inflation remained slightly above the Bank of England’s 2% target, reinforcing the belief that interest rates will be reduced again later this year.
Consumer prices increased by 2.2% from the previous year, maintaining the same pace as July and coming in below the BOE’s forecast, according to the Office for National Statistics. This figure matched the median expectation of economists surveyed by Bloomberg. While lower costs for motor fuels, restaurants, and hotels provided downward pressure, rising airfares counterbalanced this trend.