UK inflation holds steady at 3.8% as fuel prices offset falling air fares

Annual August rate released as Bank of England considers holding interest rate at 4% to tackle rising prices

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UK inflation held steady in August, official figures show, maintaining pressure on households as the Bank of England prepares to keep borrowing costs at elevated levels.

Figures from the Office for National Statistics (ONS) show the annual rate of inflation as measured by the consumer price index remained at 3.8% last month, the same level as July and matching the forecasts of City economists.