British inflation was unchanged in August, official data showed Wednesday, fuelling expectations that the Bank of England will not cut interest rates again at its meeting this week.

The Consumer Prices Index stood at 3.8 percent last month, the same level as in July, the Office for National Statistics (ONS) said in a statement.

The figure was in line with analysts’ forecasts.

The BoE trimmed borrowing costs in August to four percent, its lowest level in 2.5 years, but is widely expected to maintain its key interest rate on Thursday and for the remainder of 2025.

The Labour government faced a fresh blow last week as data showed the economy stagnated in July, which came at the end of a turbulent week politically for Prime Minister Keir Starmer.

Official data on Tuesday brought more bad

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