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2025-09-17 14:05:24
[UK inflation remains unchanged at 3.8% year-on-year in August] Official data showed on Wednesday that the UK's consumer price index (CPI) rose 3.8% year-on-year in August, the same as in July, in line with market expectations. The market generally expects the Bank of England to maintain its base interest rate at 4% on Thursday - the bank cut interest rates by 25 basis points in August. The split 5-4 vote of the Monetary Policy Committee last month suggested that the central bank may slow down its already gradual pace of interest rate cuts as inflation continues to be above target. UK inflation is higher than that of the United States (reaching 2.9% in August) and the eurozone (rising to 2.1%, slightly above the ECB's 2% target). The Bank of England predicts that domestic inflation will reach 4% in September and will remain above the 2% target until the spring of 2027. Despite the loosening of the labor market, it still puts upward pressure on prices. The latest data shows that although wage growth in the UK has slowed, the 4.8% increase in basic wages still makes it difficult for the central bank to be optimistic about the inflation outlook.
