UK inflation held steady in August, official figures show, adding to pressure on households as the Bank of England considers keeping interest rates at elevated levels in order to combat fast-rising consumer prices.
Figures from the Office for National Statistics show the annual rate of inflation as measured by the consumer prices index remained at 3.8% last month, the same level as July, matching the forecasts of City economists.
Against a backdrop of rising inflationary pressures, financial markets are widely predicting Bank policymakers will keep interest rates on hold at 4% on Thursday.
The chancellor, Rachel Reeves, is facing intense scrutiny over Labour’s economic management amid widespread speculation about tax increases in her autumn budget, which is expected on 26 November.
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