UK inflation holds steady at 2.2% in August
Consumer Prices Index (CPI) inflation remained unchanged in August, according to the Office for National Statistics (ONS).
The CPI measures the change in the prices of goods and services bought by households.
The ONS said that the CPI was unchanged in August compared with July, when it also stood at 2.2%.
This is the first time that the CPI has remained unchanged for two consecutive months since the start of the pandemic.
The ONS said that the main upward pressure on the CPI came from clothing and footwear, furniture and household goods, transport and recreation and culture.
The main downward pressure came from food and non-alcoholic beverages, and housing and utilities.
The Retail Prices Index (RPI), which includes housing costs, rose by 3.9% in August, down from 4.8% in July.
The RPI is used to calculate some benefits and pensions.
The ONS said that the fall in the RPI was due to a decrease in the cost of petrol and diesel.
The Bank of England's target for inflation is 2%.
The Bank has said that it will keep interest rates low until inflation is sustainably back at target.
Economists had expected inflation to rise in August, due to the end of the Eat Out to Help Out scheme and the increase in the energy price cap.
However, the ONS said that the impact of these factors was offset by a fall in the cost of petrol and diesel.
The ONS also said that there was a decrease in the cost of clothing and footwear in August, which is typically a time of year when prices rise due to the start of the new school year.
Overall, the data suggests that inflation is likely to remain subdued in the coming months.
This is good news for the Bank of England, which is trying to keep inflation under control.
However, it is still too early to say whether inflation has peaked.
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