Inflation stayed at 3.8 per cent in the year to August, according to figures released by the Office for National Statistics (ONS) on Wednesday.

The Consumer Prices Index (CPI) measure of inflation released today is well above the Bank’s 2 per cent target.

Economists had widely predicted that inflation would stay high.

It comes the same week as the Bank of England are expected to hold interest rates at 4 per cent.

What will happen to inflation in the future

Inflation is widely expected to stay high this year, but economists are divided on how high it will reach.

The Bank of England has said it expected inflation to hit a peak of 4 per cent in September. However others, such as economist Andrew Sentance, believe it could go higher than 4 per cent, potentially to 5 per cent.

It is expe

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