Inflation in the U.K. held steady at an annual rate of 2.2% in August with higher air fares offset by lower fuel costs and restaurant and hotel bills
Inflation in the U.K. held steady at an annual rate of 2.2% in August, with higher air fares offset by lower fuel costs and restaurant and hotel bills, official figures showed Wednesday.
The latest reading from the Office of National Statistics means inflation remains just above the Bank of England’s target of 2%.
Last month, the central bank reduced its main interest rate by a quarter-point to 5%, the first cut since the onset of the pandemic.
Central banks around the world dramatically increased borrowing costs from near zero during the coronavirus pandemic when prices started to shoot up, first as a result of supply chain issues built up during the pandemic and then because of Russia’s full-scale invasion of Ukraine which pushed up energy costs.
