LONDON (AP) — Inflation in the U.K. held steady at an annual rate of 2.2% in August, with higher air fares offset by lower fuel costs and restaurant and hotel bills, official figures showed Wednesday.

Inflation in the U.K. held steady at an annual rate of 2.2% in August with higher air fares offset by lower fuel costs and restaurant and hotel bills.

UK inflation has stayed above the government's target, remaining unchanged at 2.2% in August, as economists reveal a spike in the cost of air fares.

(Bloomberg) — UK inflation held at just above the Bank of England’s 2% target in August, cementing expectations that policymakers will cut interest rates again later this year. 

The United Kingdom (UK) Office for National Statistics (ONS) will release August Consumer Price Index (CPI) figures on Wednesday.

U.K. inflation came in at 2.2% for the month of August, data from the Office for National Statistics showed Wednesday.

The EUR/GBP cross loses its recovery momentum near 0.8445 during the early European session on Wednesday.

UK inflation was unchanged in August, according to figures released on Wednesday by the Office for National Statistics, remaining above the Bank of England’s target.

Inflation in the eurozone fell to 2.2% in August from 2.6% a month earlier and confirming a flash estimate two weeks ago, according to official data published by the European Union on Wednesday.

A sharp rise in airfares and the strength of the housing market kept inflation at 2.2 percent.

Lower fuel prices helped offset the higher cost of flying in the year to August.