Summary

  • Prices in the UK rose by 3.8% in the 12 months to August, pushed up by steeply rising food prices

  • The overall figure remains the same as last month, meaning inflation is still at a 19-month high and almost double the Bank of England's 2% target

  • What it means: At 3.8% inflation, a product which cost £10 a year ago would cost £10.38 now

  • But food prices rose even further, by 5.1% - here's what's behind it

  • "I know families are finding it tough and that for many the economy feels stuck," Chancellor Rachel Reeves says, adding she's "determined to bring costs down"

  • Inflation is calculated by looking at common purchases but, depending on what you spend your money on, you may feel rising prices more or less than average

Live Reporting

Edited by Sean Seddon

  1. What are we expecting?

    Dearbail Jordan
    Senior business and economics reporter

    A woman shopping in a supermarketPA Media

    The Consumer Price Index (CPI) measure of inflation is expected to show a 3.8% rise for the year to August.

    If so, it would be the same pace recorded for the 12 months to July. That’s the good(-ish) news.

    The bad news is inflation is expected to rise to 4% in September when those figures are announced next month, which would mean it is double the Bank of England’s 2% target.

    The upshot of this is it is unlikely the Bank will cut interest rates on Thursday. The committee is meeting this week to discuss the next move and there’s speculation there might not be a further reduction for the rest of the year.

    It’s not something people buying a home or re-mortgaging are going to want to hear but savers will probably welcome it.

    Since August late year, the Bank has cut interest rates five times to the current level of 4%, which is the lowest level for two years.

  2. How much are prices rising? Latest inflation data to be released shortly

    Sean Seddon
    Live reporter

    Good morning and welcome to our coverage of this morning's inflation announcement.

    The latest data on how prices are rising in the UK will be published in about 45 minutes.

    We'll be looking out for any rise in the prices you pay for goods and services, and analysing what it means.