UK overall inflation remains at 3.8% in August, but food price growth climbs for fifth month in a row - as it happened

Food prices rise at fastest rate since January 2024 with vegetables, milk, cheese and fish going up; US Federal Reserve widely expected to cut rates later today

The pound is little changed versus the dollar following the inflation data, at $1.3636, but hovering at a two-month high.

Victoria Scholar, head of investment at the investing platform interactive investor, said:

In light of today's data, it still looks like the Bank of England is on track to keep interest rates unchanged at tomorrow's decision meeting. While inflation is clearly stuck significantly higher than target, there was nothing too surprising in this inflation report - CPI came in line with forecasts, and consequently there wasn't much of a reaction from sterling.

Elevated inflation, notably higher than the 2% target makes it harder for the central bank to continue on its monetary loosening path, raising the likelihood of a higher-for-longer interest rate environment which could have negative effects on borrowing and the housing market.