A branch of supermarket retailer Sainsbury's in Bristol, England.
Matt Cardy | Getty Images News | Getty Images
The U.K.'s annual inflation rate was steady at 3.8% in August, according to data released by the Office for National Statistics (ONS) on Wednesday.
Economists polled by Reuters had expected inflation to reach 3.8% in the twelve months to August.
August core inflation, which excludes more volatile energy, food, alcohol and tobacco prices, rose by an annual 3.6%, down from 3.8% in the twelve months to July.
The data comes after the consumer price index hit a hotter-than-expected 3.8% in July, exceeding forecasts.
Finance Minister Rachel Reeves commented that she recognized that "families are finding it tough and that for many the economy feels stuck. That's why I'm determined to bring costs down and support people who are facing higher bills."
Pound sterling was slightly lower against the dollar after the data release, at $1.3637.
The Bank of England is closely watching inflation data after forecasting the consumer price index could peak at 4% in September, before retreating in the early half of 2026.
The central bank cut interest rates in August, taking the key rate from 4.25% to 4%, and saying it would take a "gradual and careful" approach to monetary easing, mindful of inflationary pressures but aware of the need to promote growth and investment.
It next meets on Thursday but it is not expected to adjust rates this month.
This is a breaking news story, please check for further updates.
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