Another interest rate cut from the Bank of England this year looks uncertain after the latest U.K. inflation data came in cooler expected.

The annual inflation rate was unchanged in September, coming in at 3.8% for the third month in a row.

The data, released by the Office for National Statistics (ONS) Wednesday, shows that the financial squeeze on consumers and businesses remains high, but there are hopes this could be the peak.

The Bank of England forecast earlier this year that the consumer price index would top out at 4% — double the central bank's target — in September, before gradually cooling into next year. Economists polled by Reuters had also expected the rate to rise to 4% in the twelve months to September.

September's core inflation, which excludes more volatile energy, foo

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