Office for National Statistics (ONS) figures released on Wednesday show that inflation in the United Kingdom held steady at 3.8% in August, despite sharp increases in food and fuel prices.
Food and drink once again proved a key driver, with inflation in this category rising to 5.1% in August, up from 4.9% in July. Prices for restaurants, hotels and petrol also climbed over the same period.
These results align with the expectations of the Bank of England’s Monetary Policy Committee, which is set to keep the base interest rate at 4%.
While the UK economy enjoyed a relatively calm start to the year, recent months have been more challenging, partly due to higher taxes and customs tariffs introduced by Donald Trump and his administration.
The figures mark a setback for Rachel Reeves, the Chancellor of the Exchequer, as she prepares to deliver her budget for the coming year in November.
