UK inflation remains steady at 3.8% in August
Experts share inflation warning as food and drink prices rise
- UK Consumer Prices Index (CPI) inflation remained unchanged at 3.8 per cent in August, aligning with July's rate and economist expectations.
- Food and drink inflation accelerated for the fifth consecutive month, rising to 5.1 per cent in August from 4.9 per cent in July, impacting household budgets.
- The Office for National Statistics noted that lower airfare costs were offset by increases in fuel prices and hotel accommodation, alongside rising food prices for items such as vegetables, cheese, and fish.
- Chancellor Rachel Reeves acknowledged the economic difficulties for families and outlined government support measures, while the Food and Drink Federation projects food inflation could reach 5.7 per cent by year-end.
- Businesses continue to face cost pressures, prompting the British Chambers of Commerce to call for no new tax rises, and the Bank of England is not expected to cut interest rates further in the near term.