Interior of the cheese cheese cheese business, monitor -cheese -Monger, East Dulwich, London, England, Great Britain.
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The annual inflation rate in Great Britain was 3.8% in August, according to the data published by the Office for National Statistics (ONS) on Wednesday.
Economists surveyed had expected that inflation would reach 3.8% in the twelve months until August.
The core inflation in August, which excludes volatile energy, food, alcohol and tobacco prices, rose by 3.6% compared to 3.8% in the twelve months to July.
“The cost of flight prices was the main driver this month, whereby the prices rose less than a year ago after the great climb in July in connection with the time of the summer vacation,” said Grant Fitzner, chief economist of the ONS, on the X Social Media platform X.
“This was compensated for by a price increase to the pump and the costs of hotel accommodation less than this time last year.”
The inflation of the food price rose for the fifth month in a row, as the ONS stated, with small increases in a series of vegetable, cheese and fish items.
The data takes place after the consumer price index reached a hotter than expected 3.8% in July, which exceeded the forecasts.
Finance Minister Rachel Reeves noticed that she realized that “families find it hard and that the economy is for many. That is why I am determined to reduce costs and support people who are faced with higher invoices”.
The pound of Sterling was slightly lower compared to the dollar after the data publication with 1.3637 US dollars.
The Bank of England observes the inflation data exactly after the forecast of the consumer price index in September can reach a highlight of 4% before it withdrawn in early 2026.
The central bank reduced interest rates in August, with the hit from 4.25% to 4% and said that it would require a “gradual and careful” approach for monetary relaxation that are aware of inflation pressure, but are aware of the need to promote growth and investments.
Next, it will meet on Thursday, but it is not expected that interest rates will adjust this month, and there is uncertainty as to whether it could be reduced in November.
The sticky inflation limits the chance for a fourth rate through the Boe this year, Scott Gardner, investment strategist of the Digital Wealth Manager from JP Morgan, Nutmeg, on Wednesday.
“While wage growth has decreased in the past few months, more progress is required in the inflation front to convince the bank’s political decision -makers that another interest reduction is possible in the current economic environment. A fourth rate in 2025 will require a further weakness of the labor market, a somewhat pyrrhical victory,” he said in E -Mail comments.
“In view of the forecasts that indicate that inflation could continue to rise at short notice and 4% of 4% in autumn, the cost of living finances will exist in the coming months,” said Gardner and added that “in a short, sticky inflation will probably be stickier.”
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