UK CPI rose +0.3% MoM in August and was unchanged at +3.8% YoY, reflecting offsetting moves across key categories.

• Core CPI eased to +3.6% YoY (from +3.8%) with a +0.3% MoM increase, indicating slightly softer underlying inflation.

• CPI services slowed to +4.7% YoY (from +5.0%), while CPI goods edged up to +2.8% YoY (from +2.7%), showing a modest shift from services toward goods.

• Air fares made the largest downward contribution to the annual rate; this was partly offset by upward contributions from restaurants & hotels and motor fuels.

• CPIH (incl. owner-occupiers’ housing costs) rose +0.3% MoM and +4.1% YoY (down from +4.2%), with OOH costs up +5.3% YoY—the lowest since Dec 2023—easing the headline slightly.

• Food & non-alcoholic beverages accelerated to +5.1% YoY (from +4.9%) and rose +0.4% MoM, lifting the food contribution to headline inflation.

• Transport inflation cooled to +2.4% YoY (from +3.2%), led by weaker air fares; motor fuels still exerted an upward monthly effect.

• Restaurants & hotels inflation picked up to +3.8% YoY (from +3.4%), as accommodation prices fell less than a year earlier.