UK inflation holds steady at 2.2% ahead of BoE's rate decision

Posted on September 20, 2024   |  

UK inflation stayed at 2.2% in August, with higher airfares balanced by lower fuel and restaurant costs.

Inflation is just above the Bank of England's 2% target, putting continued focus on economic policies.

Last month, the Bank of England reduced its interest rate by 0.25% to 5%, the first cut since the pandemic began.

Central banks worldwide raised interest rates during the pandemic to control rising inflation.

Supply chain disruptions from the pandemic and higher energy prices after Russia's invasion of Ukraine drove inflation increases.

Energy costs have played a key role in pushing inflation higher over the past two years.