UK inflation holds firm at 2.2% as Bank of England decision beckons

Services inflation remains sticky

The annual rate of UK inflation held steady in August, as the Bank of England weighs its options ahead of the next Monetary Policy Committee meeting on Thursday (19 September).

According to figures published by the Office for National Statistics today (18 September), the UK's Consumer Price Index rose by 2.2% in the 12 months to August, a figure that did not budge from July.  However, core CPI, which excludes energy, food, alcohol and tobacco, jumped from a 3.3% rise in July to a 3.6% uptick in August, with notable increases month-month in the price of transport and services, which increased from 0.1% to 1.2% and 5.2% to 5.6%, respectively.  Investors welcome rate cut but urge BoE to be vigilant as inflationary pressures 'still lurking' Tom Stevenson, inv...