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A branch of supermarket retailer Sainsbury’s in Bristol, England.<\/p>\n
Matt Cardy | Getty Images News | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
The U.K.’s annual inflation rate was steady at 3.8% in August, according to data<\/a> released by the Office for National Statistics (ONS) on Wednesday.<\/p>\n Economists polled by Reuters had expected inflation to reach 3.8% in the twelve months to August.<\/p>\n 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.<\/p>\n The data comes after the consumer price index hit a hotter-than-expected 3.8%<\/a> in July, exceeding forecasts.<\/p>\n Finance Minister\u00a0Rachel 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.”<\/p>\n Pound sterling was slightly lower against the dollar after the data release, at $1.3637.<\/p>\n The Bank of England is closely watching inflation data\u00a0after forecasting the consumer price index could peak at 4% in September<\/a>,\u00a0before retreating in the early half of 2026.<\/p>\n