UK inflation stable ahead of central bank rate call
LONDON

British inflation was unchanged in August, official data showed on Wednesday, fuelling expectations that the Bank of England will not cut interest rates again at its meeting this week.
The Consumer Prices Index stood at 3.8 percent last month, the same level as in July, the Office for National Statistics (ONS) said in a statement.
The BoE trimmed borrowing costs in August to four percent, its lowest level in 2.5 years, but is widely expected to maintain its key interest rate on Thursday and for the remainder of 2025.
The Labour government faced a fresh blow last week as data showed the economy stagnated in July, which came at the end of a turbulent week politically for Prime Minister Keir Starmer.
Official data on Tuesday brought more bad news, showing U.K. unemployment remaining at a four-year high of 4.7 percent.
While the July GDP figure was in line with market expectations, the government acknowledged difficulty in driving economic growth ahead of its annual budget announcement in late November.
The BoE expects inflation to peak at four percent in September, twice its two-percent target.
The ONS noted that airfares declined in August after a sharp increase the previous month, while there was a rise in petrol and diesel prices, as well as another uptick in food prices.