At the beginning of the European session, the published data shows that annual inflation in the UK remained at 3.8% for August, unchanged compared to July as expected.
The permanent consumer price index readings show that price pressure is still ongoing.
Core readings that excluded food and energy recorded a slight decrease to 3.6%, but it remained higher than the Bank of England (BOE) target of 2%.
Food prices continued to rise by around 5.1%, increasing the cost of living for households, especially for low -income groups.
Service inflation slightly slowly to 4.7% but still shows difficult domestic pressure.
Strong salary growth also poses a higher risk of inflation for longer than the initial expectation.
Towards the BOE Monetary Policy Meeting on Thursday, the market expects the central bank to maintain a 4.00% interest rate while waiting for a clearer data before considering the flexibility.
The signal from the meeting is expected to give an overview of whether space for interest rate cuts in the fourth quarter of this year is still open or need to be postponed longer.
