The UK’s inflation rate remains steady at 3.8% in August, in line with expectations. The Bank of England predicts inflation will hit 4% in September. Interest rates are expected to remain at 4%. Core inflation, excluding volatile elements, rose by 3.6%. Food prices were the main driver of inflation staying at 3.8%. Services inflation has slowed, a positive sign. Economists anticipate further rate cuts this year due to weak economic indicators. GDP showed no growth in July. Bond yields spiked amid concerns over long-term debt. Chancellor Rachel Reeves is expected to announce tax changes in the Autumn Budget.

Read more at Morningstar: UK Inflation Stable at 3.8% Ahead of Bank of England Interest Rate Decision