The figures are likely to keep the BOE on track for a further loosening in policy in coming months after it cut rates for the first time since the pandemic on Aug 1, citing easing underlying inflation.
UK inflation held at just above the Bank of England’s (BOE) 2% target in August, cementing expectations that policymakers will cut interest rates again later this year.
Consumer prices rose 2.2% from a year earlier, the same pace as in July and below the BOE’s forecast, the Office for National Statistics (ONS) said Wednesday. The reading was in line with the median expectation of economists surveyed by Bloomberg. Downward pressures from motor fuels, restaurants and hotels were offset by an upward push from air fares.
