"Inflation in the UK remained stuck at 3.8% in August, the highest level in 19 months, reinforcing expectations that the Bank of England will keep interest rates unchanged when it announces its latest decision tomorrow. The Office for National Statistics (ONS) confirmed on Wednesday that consumer prices rose at the same pace as in July, broadly in line with forecasts from analysts and the Bank itself."
"The figures will do little to ease pressure on chancellor Rachel Reeves as she prepares her first autumn budget, scheduled for November 26. With debt servicing costs rising and productivity forecasts expected to be downgraded by the Office for Budget Responsibility, Reeves is weighing up tax rises and spending cuts worth as much as £40 billion. Acknowledging the difficult climate, Reeves said: "Families are finding it tough and for many the economy feels stuck.""
Inflation in the UK stood at 3.8% in August, the highest in 19 months. The ONS confirmed consumer prices rose at the same pace as July and broadly matched forecasts. Inflation remains nearly double the 2% target and above US and eurozone levels. Chancellor Rachel Reeves faces pressure ahead of a November 26 budget as debt servicing costs rise and productivity forecasts may be downgraded, prompting consideration of up to £40 billion in tax rises or spending cuts. Services inflation eased to 4.7% and core inflation fell to 3.6%, while food prices rose 5.1%, driven by cheese, fish and vegetables.
Read at Business Matters
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