UK inflation stays at 2.2%, above Bank of England target

The UK’s annual inflation rate rose by 2.2% in August, matching the increase in July, hovering just above the Bank of England’s 2% target. Figures from the show the government’s preferred measure of the cost of living remained steady as consumers cut back spending on big-ticket items.

City economists had expected an increase of 2.2%. Consumers have seen inflation ease from above 10% in early 2023, mainly because of lower increases in the cost of energy and food.



The rise in the consumer prices index (CPI) was below the Bank’s forecast for a rise of almost 2.4%. The Bank is under pressure to cut interest rates to boost growth but officials are expected to hold interest rates when they meet on Thursday.

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