UK inflation is steady at 2.2% ahead of Bank of England's next rate decision

Inflation in the U.K. held steady at an annual rate of 2.2% in August with higher air fares offset by lower fuel costs and restaurant and hotel bills. The latest reading from the Office of National Statistics on Wednesday means inflation remains just above the Bank of England’s target of 2%. Last month, the central bank reduced its main interest rate by a quarter-point to 5%, the first cut since the onset of the pandemic. Most economists think the bank will opt to keep borrowing costs unchanged after its latest policy meeting on Thursday. However, they think that the bank will most likely cut again in November, in the wake of the government’s budget on Oct. 30.