Inflation hit 6.7 in August, down from 6.8 in July, and significantly lower than the 7.1 that had been expected.
The Bank of England is still likely to hike interest rates on Thursday, but this week’s lower-than-expected inflation figures give decision-makers a little more leeway than they otherwise would have had, economists said.
Inflation hit 6.7% in August, down from 6.8% in July, and significantly lower than the 7.1% that had been expected. The bank had forecast that pay would rise 6.9% over three months compared to the year earlier. In fact, it appears to have risen 8.1%. It could therefore mean that if the Bank decides to hike rates this week, that might be the last time they do so, at least for a while.
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