UK August CPI rose 3.1% year-on-year, a new high since March, in line with expectations; the market expects the Bank of England to keep interest rates unchanged on Thursday.
The UK's Consumer Price Index (CPI) rose by 3.1% year-on-year in August, up from 2.9% in July and the highest level since March this year, the Office for National Statistics announced on September 16. This figure met market expectations. Rising gasoline and diesel prices were the main drivers, with higher household energy bills further contributing to overall inflation. The Bank of England's Monetary Policy Committee (MPC) is scheduled to meet on Thursday. The market widely expects the central bank to keep the benchmark interest rate unchanged at 3.75%, but has begun to bet on a potential rate hike as early as November.
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