UK Core Inflation Rises to 3.6% in August Sinking BoE Rate Cut Hopes
According to the Office for National Statistics:
The UK yearly inflation rate stayed stable at 2.2% in August.
The Consumer Prices Index, consisting of owner-occupier real estate expenses (CPIH), increased by 3.1% in the 12 months to August, the same from July.
The Core CPIH (leaving out energy, food, alcohol, and tobacco) was up 4.3% in the 12 months to August 2024, up from 4.1% in July.
The CPIH services yearly rate increased from 5.7% in July to 5.9% in August.
The biggest contribution originated from air travels, countering down contributions from motor fuels, dining establishments, and hotels.
Bank of England Interest Rate Path
Ahead of the inflation numbers, the agreement was for the Bank of England to hold rate of interest constant at 5.0%.
The unforeseen boost in the core inflat...