Inflation remains at 3.8 percent; slight relief ahead of budget

Inflation remains at 3.8 percent, a slight relief for the Chancellor ahead of the Budget. The Office for National Statistics confirmed that inflation remained at 3.8 percent in September.

Although concerns that it will increase further have been dispelled. Economists had also predicted that inflation would fall after reaching 4 percent in September.

The extent to which benefits will increase next year is decided based on September inflation. Therefore, these figures are very important. The ONS says that despite the increase in petrol and air prices, a small decline in inflation led to the relief. There is also hope that the Bank of England will be ready to cut interest rates in the coming months if . The market sees the possibility of cutting rates to 3.75 percent in December.

Financial market experts also clarify that there is no chance of cutting interest rates at the monetary policy meeting in November. Another reduction will only be made after it is ensured that inflation has reached its peak.