UK Inflation Persistence Challenges Economic Outlook

The UK's annual consumer price inflation remains at 3.8% as of September, contrary to predictions of a rise to 4.0%. Despite efforts, British inflation is set to be the highest among G7 nations by 2025-2026, complicating the Bank of England's interest rate adjustments.

Britain's annual consumer price inflation stayed steady at 3.8% in September, falling short of the anticipated rise to 4.0%, according to official figures released Wednesday.

The International Monetary Fund warned that the UK will have the highest inflation among G7 countries by 2025-2026, posing challenges for the Bank of England's ability to lower interest rates to invigorate the flagging economy.

The British labor market shows signs of losing momentum, while central bank policymakers remain divided over the persistent inflation pressures, with expectations inching up in recent months.

(With inputs from agencies.)