UK inflation unexpectedly remains at 3.8% for third month in a row

UK inflation has surprisingly held steady at 3.8% for the third consecutive month, defying predictions of an increase. This stability is particularly significant as it marks the first slowdown in food price growth since March, providing a glimmer of hope for consumers and the economy. For Chancellor Rachel Reeves, this news is a welcome relief, suggesting that the peak of inflation may have been reached, which could pave the way for earlier interest rate cuts by the Bank of England. This development is crucial as it could ease financial pressures on households and stimulate economic growth.