LONDON (Reuters) -Britain’s annual rate of consumer price inflation remained at 3.8% in September, below expectations, official figures showed on Wednesday.
Most economists polled by Reuters and the Bank of England had forecast that the headline measure of inflation would rise to 4.0% after holding at 3.8% in August and July.
British inflation will be the highest among the Group of Seven economies in 2025 and 2026, the International Monetary Fund said last week, hampering the Bank of England’s slow progress in cutting interest rates to help the slow economy.
The BoE was expecting British consumer price inflation to hit 4% in September before gradually weakening and only hitting its 2% target in the April-to-June period of 2027.
Britain’s labour market is losing steam but policymakers at the central bank are split on how much inflation pressure remains in the economy, with inflation expectations rising in recent months.
(Writing by William Schomberg; Editing by Kate Holton)
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