Economic Indicators
inflation remained at 2.2% in August, with higher air fares balanced by lower fuel costs and slower growth in restaurant and hotel prices, staying slightly above the 's 2% target.
Services sector inflation rose to 5.6% in August, driven by increased air fares across European routes, indicating a complex inflation landscape ahead of monetary policy decisions.
Monetary Policy Outlook
The Bank of England, having cut the interest rate to 5% in August for the first time since the pandemic, is expected to maintain this rate in its upcoming meeting, with a potential cut in November post-budget.
Economic experts and officials suggest that despite the steady inflation, the Bank of England may assess the impact of the upcoming government budget before making further rate adjustments, reflecting cautious optimism.