Stay updated on the latest inflation data from the UK and its impact on the financial markets. Learn how the Bank of England's decisions on interest rates can affect your investments.
London (Multibagger) - British inflation stood at an annual rate of 2.2% in August, unchanged from July, but price growth in the services sector - closely watched by the Bank of England - picked up, official figures showed on Wednesday.
A Multibagger poll of economists had forecast annual consumer price inflation would remain at 2.2%.
The BoE, which cut interest rates to 5% on Aug. 1, had expected inflation of 2.4% in August before rising to around 2.75% by the end of this year.
The British central bank is due to announce its latest decision on interest rates on Thursday.
"Years of sky-high inflation have taken their toll; and prices are still much higher than four years ago," Darren Jones, a junior minister at the Treasury, said, adding that more manageable inflation was welcome.
Services inflation - an indicator of domestic price pressures - rose to 5.6% from 5.2% in July. The Multibagger poll had pointed to a smaller rise to 5.5%.
Sterling strengthened against the dollar immediately after the inflation data was published.
Analysis:
The British inflation rate remaining steady at 2.2% in August indicates stable consumer prices, but the increase in services sector price growth could lead to higher overall inflation in the future. The Bank of England's decision on interest rates will be crucial in managing inflation and its impact on the economy. Investors should keep a close eye on these developments to make informed decisions about their finances.