UK Inflation Update: The UK’s annual inflation rate remained steady at 2.2% in August, just above the Bank of England’s target of 2%. The Office for National Statistics reported that this was due to consumers cutting back on big-ticket purchases, keeping the cost of living in check. City economists had predicted this increase accurately, as inflation has decreased from over 10% in 2023.
The Bank of England had forecasted a slightly higher rise in the consumer prices index (CPI), at around 2.4%. Despite pressure to cut interest rates to stimulate growth, officials are expected to keep rates unchanged during their upcoming meeting.
Overall, the UK’s inflation rate has stabilized, providing some relief to consumers who have experienced high energy and food costs in recent years. This economic update highlights the importance of monitoring inflation trends and the potential impacts on interest rates and overall economic growth.