Sterling Steady as UK Inflation Data Looms Over BoE Decision

The British pound remained steady against both the euro and the US dollar on Wednesday following the release of UK inflation data for August. The headline consumer price index rose to 3.1% year-over-year, its highest level since March.

However, core inflation, which excludes volatile items such as food and energy prices, held steady at 2.6% for the fourth consecutive month. This has led some analysts to suggest that the risk of persistent inflation is low.

The pound was little changed against the dollar, trading at $1.3471, but remains close to its one-month low of $1.3464 reached last week. Against the euro, the pound was flat at 85.66 pence.