UK inflation stays at 2.2% but BoE on alert due to services prices
UK inflation stays at 2.2% but BoE on alert due to services prices
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NewsTranscript
00:00Inflation in the United Kingdom stayed at 2.2% in August as higher airfare was balanced by lower
00:07fuel and restaurant costs. This means inflation is just above the Bank of England's target of 2%.
00:14Most economists believe the Bank of England will keep interest rates steady after its meeting.
00:19Many members are cautious about inflation in the important services sector. However,
00:24they think the bank might lower rates again in November after the government's budget announcement
00:29on October 30. The new Labour government needs to fix 22 billion euro gap in public finances,
00:36which may lead to higher taxes and less spending,
00:39potentially slowing down the economy and reducing inflation.