Inflation in the UK remains unchanged in August, in line with forecasts.

• The Office for National Statistics revealed that U.K. inflation was 2.2% in August, as per the data.
• The CPI reading in August was in line with the previous 2.2% reading in July and met analyst expectations, according to Reuters polled economists.
• In May and June, the CPI was at 2%, which aligned with the Bank of England's target rate.

The Office for National Statistics revealed on Wednesday that U.K. inflation remained unchanged in August, in line with analyst predictions.

The headline consumer price index (CPI) in July was in line with the previous 2.2% reading and also matched a prediction from a Reuters poll of economists. In May and June, the headline CPI came in at 2%, which was in line with the Bank of England's target rate.

The BOE closely monitors inflation, which is a key indicator of domestically-generated price rises, and it increased from 5.2% in July to 5.6% in August.

The core inflation rate, which excludes energy, food, alcohol, and tobacco, increased to 3.6% in August from the 3.3% recorded in July.

The ONS stated that the largest contributors to upward price pressure were higher air fares, which increased from a lower base last year, while motor fuel, hotels, and restaurants experienced the biggest declines.

On Thursday, BOE policymakers will make their latest monetary policy decision, with traders anticipating the bank to maintain rates.

The probability of a second consecutive 25 basis point cut doubled to almost 40% this week, but the prospect of a more aggressive reduction in borrowing costs when the U.S. Federal Reserve meets Wednesday has increased the likelihood of a second consecutive cut.

The upcoming Autumn Statement in the U.K. will reveal the new Labour government's budget plans for the upcoming term.

Darren Jones, the Chief Secretary to the Treasury, expressed his welcome for "more manageable inflation" while acknowledging the need for further effort to "repair the economy's base."