Cliff Notes
- Inflation remains high at 3.8% in August, unchanged from July, according to the Office for National Statistics (ONS).
- The Bank of England anticipates an increase to 4% in September, exceeding its 2% target, suggesting prolonged higher interest rates.
- Core inflation, excluding volatile food and energy prices, has decreased to 3.6%, down from 3.8% the previous month.
New inflation figure announced – and experts predict worse to come | Money News
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Inflation has remained relatively high, meaning goods are becoming more expensive, official figures show.
The rate of price rises remained at 3.8% in August, the same as in July, according to data from the Office for National Statistics (ONS).
Money blog: Here’s what inflation figure means for you
The figure is exactly as forecast by economists polled by the Reuters news agency.
But prices are expected to continue to rise, with the Bank of England forecasting the rate will hit 4% in September.
Such a high is double the central bank’s 2% target, meaning interest rates – and the cost of borrowing as a result – could remain higher for longer.
Behind the headline figure
Other measures of inflation slowed.
Core inflation, which strips out volatile food and energy prices, and is closely watched by the rate-setters at the Bank of England, fell back to 3.6% from 3.8% last month.
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