Inflation hits 3.8% as tax hikes see food price spike

Inflation reached 3.8 per cent in the year to August, according to official data, issuing a stark warning to Bank of England officials before Thursday's critical interest rate decision.

The July inflation reading stood at 3.8 per cent, with August's figure expected to reinforce that Bank of England policymakers will opt to maintain interest rates at their upcoming Thursday meeting, as reported by City AM .

Economists are anticipated to scrutinise closely the effects of elevated food price inflation and services inflation, given their respective influence on British consumers' perceptions of living costs and wage pressures.

The Office for National Statistics (ONS) reported that services inflation stood at 4.7 per cent, marginally down from the five per cent recorded the previous month.