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flag UK inflation stayed at 3.8% in August, driven by rising food prices, keeping rates above target.

flag UK inflation held steady at 3.8% in August, with food and drink prices rising at a 5.1% annual rate—the highest since January 2024—driven by higher costs for vegetables, milk, eggs, cheese, and fish. flag Despite a drop in airfares, increases in fuel and hospitality costs contributed to the overall inflation rate, which remains above the Bank of England’s 2% target. flag Core inflation eased to 3.6%, suggesting some underlying disinflation, but ongoing food price pressures may lead the BoE to delay interest rate cuts. flag Chancellor Rachel Reeves said the government is taking steps to support households facing higher bills and strengthen the economy.

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