UK Inflation Hits 3.1%, Pound Holds Steady as BoE Rate Decision Looms

The UK's inflation rate has hit its highest level since March at 3.1%, with core inflation remaining steady at 2.6% for a fourth consecutive month, according to official figures.

This news has left the pound relatively unchanged against major currencies, trading at $1.3471 versus the dollar and 85.66 pence per euro, near its one-month low of $1.3464 set last week.

Economists point out that despite the energy-driven inflation increase, there are few signs of a broader price rise that would signal persistent inflation after the energy shock fades.