Britain’s annual inflation rate held at 3.8% in August, data showed on Wednesday, underscoring sticky price pressures that could limit the Bank of England’s scope for further interest-rate cuts this year.
Core inflation eased slightly to 3.6% from 3.8% in July, helped by lower airfare costs, though rising fuel and food prices offset the decline, the Office for National Statistics said.
The BoE, which trimmed its base rate to 4% in August, meets Thursday but is not expected to move. Markets remain uncertain over whether another cut could come in November.
“Sticky inflation is restricting the opportunity for a fourth rate cut this year,” said Scott Gardner, strategist at Nutmeg.
Sterling slipped to $1.3637 after the release.
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