LONDON: Britain’s annual inflation rate for September remained far above the Bank of England’s target, according to official data released on Wednesday.
The Consumer Prices Index stood at 3.8% in September, unchanged from the previous month’s figure.
This rate was better than market expectations which had forecast a rise to 4.0%.
Finance minister Rachel Reeves expressed disappointment at the latest data while reaffirming government support for the central bank.
She stated her determination to help people struggling with higher bills and cost of living challenges.
Reeves has also hinted at potential tax rises in her upcoming budget scheduled for November 26.
Prime Minister Keir Starmer’s government previously increased a tax on businesses in its inaugural budget last October.
Official data from Tuesday showed UK government borrowing reached a five-year high in September.
Lower prices for recreational and cultural purchases helped contain inflation last month.
The cost of food and non-alcoholic drinks fell for the first time since May last year.
Petrol prices and airfares also eased compared to a year earlier.
Economists are watching whether steady inflation will prompt the Bank of England to cut interest rates again this year.
Richard Flax, chief investment officer at Moneyfarm, forecast the Monetary Policy Committee will hold rates steady in November.
He noted that with headline inflation nearly double the target, any discussion of rate cuts remains premature. – AFP
