Business

No change in inflation ahead of interest rate decision but another measure ticks unexpectedly up

There’s been no change in the rate of price rises, official inflation figures showed.

The rate of inflation stood at 2.2% in August, the Office for National Statistics said, the same as a month earlier.

The announcement comes the day before interest rate setters at the Bank of England decide on the cost of borrowing, controlled through the interest rate.

Markets are expecting only a 37% chance of an interest rate cut.

But another measure of inflation ticked unexpectedly up – core inflation rose to 3.6%, even higher than economists had forecast.

Bank officials closely watch core inflation as it gives a reading on price rises without elements like food and energy which are prone to volatility.

This breaking news story is being updated and more details will be published shortly.

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