Inflation remained stubbornly above the Bank of England’s 2pc target last month, official figures show, as policymakers prepare to announce the next decision on interest rates.

The consumer prices index was unchanged at 2.2pc in August, according to the Office for National Statistics (ONS), which was in line with economists’ expectations.

It follows a resurgence in price pressure from the services sector, which covers prices in areas such as hotels, package holidays, hospitality and culture.

Services inflation rose by 5.6pc in August, as economists expected, compared to 5.2pc in July amid a possible impact from the last leg of Taylor Swift’s UK tour. 

It raises questions for policymakers at the Bank of England as they consider whether to announce a second rate cut in as many meetings.

While services inflation is volatile, it has been stubbornly high and has been watched closely by Bank rate setters, who are expected to leave interest rates unchanged at 5pc on Thursday.

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