LONDON — Inflation in the U.K. unexpectedly held steady in the year to September as higher prices at the pump were offset by lower food costs, official figures showed Wednesday in a development that has bolstered hopes of another interest rate reduction next month.

The Office for National Statistics said consumer prices rose by 3.8% on an annual basis, unchanged from the levels seen in the previous two months.

Most economists had expected the rate to rise to 4%, which would have been double the Bank of England's target.

Economists said the flat reading will bolster hopes at the central bank that inflation has peaked and will back down towards its target over the coming months.

“Price pressures should begin to slowly ease in the coming months, but we are unlikely to see a more substanti

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