On Wednesday, September 3, 2025, UK inflation remained unchanged at 3.8% in August 2025, matching July’s rate and analysts’ forecasts, according to the Office for National Statistics (ONS), fueling expectations that the Bank of England (BoE) will hold interest rates at 4% in its Thursday meeting, as reported by Reuters and BBC News. The BoE’s August cut to 4%, its lowest in 2.5 years, aimed to balance growth amid 4.7% unemployment, a four-year high (Web:0, Web:2). The stable Consumer Prices Index (CPI) was driven by declining airfares offsetting rises in petrol, diesel, and food prices (Web:0).
Finance Minister Rachel Reeves acknowledged economic stagnation, with July GDP flat and public spending cuts looming ahead of the November budget (Web:0, Web:1). Quilter’s Lindsay James noted the “higher-for-longer” rate environment will strain households and businesses (Web:0). The BoE anticipates inflation peaking at 4% in September, twice its 2% target (Web:1). X posts from @ONS (September 3, 2025) confirmed the data, while @UK_EconWatch highlighted 62% public concern over living costs (YouGov, 2025) (Post:3).
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