The Bank of England is expected to hold interest rates at four per cent due to stubbornly high inflation.

Inflation hit 3.8 per cent in the year to August, according to official data, sending a warning to Bank of England officials ahead of a crucial interest rate vote on Thursday.

The previous reading for inflation in July was 3.8 per cent, with the August figure likely to confirm Bank of England rate-setters will vote to hold interest rates at its next decision on Thursday.

Economists are also likely to pay close attention to the impacts of high food price inflation and services inflation, given their respective impacts on Britons’ views of the cost of living and wage pressures.

The Office for National Statistics (ONS) said services inflation was 4.7 per cent, which was slightly l

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