UK inflation remains steady at 3.8% in August, ONS announces
According to official figures, British inflation remained unchanged last month, but the increases of food and beverage price accelerated in the poorest households for the fifth month.
The National Statistics Office (Ones) announced on Wednesday that the consumer prices index (CPI) was 3.8 percent in August. It was the level that most economists expected.
However, since shoppers continued to face higher prices for the products in Till, food and beverage inflation rate rose from 4.9 percent to 5.1 percent in July in August. The fifth month, when the wage increases, points to a row.
Ones Chief economist Grant Fitzner said: “The cost of flight tickets was the main driver about the increase in prices less than a year after a year ago after a major increase due to the timing of summer holidays this month, in July.
“This was balanced by the increase in prices in the pump and the lesser hotel accommodation costs less than last year.
“Food price inflation has been climbed for the fifth month and there were minor increases between various vegetables, cheese and fish substances.”
Rachel Rachel Reeves said: orum I know that families find it hard and feel that many economies are stuck. So I am determined to reduce costs and support people who are facing higher bills.
“We take action thanks to our change plan – to raise the national life fee, to extend the bus fee cover of 3 £ 3, and to expand free school meals, to put more money on people’s pockets to build a harder, more stable economy that rewarded a hard work.”
The Food and Beverage Federation (FDF) said that recent prices are “more upright than anything in the last decades and that costs will reach 5.7 percent before the end of this year and that costs may continue to increase.
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Ones also releases inflation data for the CPI, including housing costs of the invaders (CPIH) – this inflation measure is located at a rate of 4.1 percent from 4.2 percent to 12 months before August. CPIH is a more comprehensive measure of inflation that allows the scratch of international comparisons, but the UK tends to use CPI more frequently.
Nutmeg Investment Strategist Scott Gardner drew attention to signs that propose some positive signs for the future in the data – but he pointed out that households will still be based on the bill.
“With the estimates that inflation may increase in the short term and reach 4% in autumn, the cost of life on households will continue in the coming months. In short, the adhesive inflation will probably be sticky,” he said.
“Although the title ratio increases, there are some positives from this latest inflation read. The closely monitored core inflation has fallen from the 12 -month period in August. The services have also made good progress, but there are signs that enterprises continue to pass through their own cost increases.
Meanwhile, British Chambers of Commerce (BCC) stressed that businesses are still on the fire line and the government repeated their calls not to add more tax burden to the budget companies.
BCC Research Manager Stuart Morrison, “Businesses, especially at a time when cost pressure continues to bite at a time will be worried about 3.8 percent of inflation. BCC’s latest economic estimate, inflation is expected to remain inflation until the end of the year,” he said.
“Companies are clear that the increase in April in national insurance, strong wage growth continues and higher tariffs erode operating margins. There is an increasing concern that adhesive inflation will limit more interest rates.
“Before the autumn budget, our message to Chancellor is open – there should be no new tax increases in the business world. Firms cannot provide the economic growth we need if we continue to be prevented with increasing costs.”
A financial expert called for protectors to protect their money by ensuring that the interest rate of their banks is higher than the inflation rate.
“Although the inflation rate seems to be constant at 3.8%, it still creates a difficulty for the preservatives. At this level, the real value of their money continues to be carved,” he said.
“Now it is not the time for peace of mind and the preservatives should be proactive when reviewing their accounts. Many are still the key to protecting financial welfare by gaining minimum attention and offering a return above inflation.”
As the inflation is high and the job data of this week are still uncertain, the Monetary Policy Committee has no chance to reduce the interest rates of the Bank of the UK when it is gathered on Thursday. Many analysts currently do not expect any more deductions in the rest of 2025 and leave the bank ratio to 4 percent.
