Bank of England Expected to Hold Interest Rates as UK Inflation Rises to 3.1%
Factory gate prices also climbed in August, driven by higher crude oil and petrol costs, according to figures cited in reporting on the UK economy.
The Bank of England is expected to leave interest rates unchanged on Thursday, even as UK inflation rose to 3.1%, according to reporting by The Guardian.
The report noted that the cost of goods produced by UK factories also increased at a faster pace in August. Producer output prices, described as the cost of goods at the "factory gate," rose by 3.7% in the year to August, up from 3.3% in July.
According to the report, the increase was attributed to rising crude oil and petrol prices, which pushed up both the annual cost of raw materials and the price of goods leaving factories.
The figures come amid what The Guardian described as a tightening cost-of-living squeeze for households in the UK.
The Bank of England's interest rate decision is scheduled for Thursday, with market expectations pointing toward rates being held steady despite the inflation reading, per the report.
Sources
- Bank of England expected to leave interest rates on hold on Thursday despite inflation hitting 3.1% – business live — The Guardian — Business
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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