THE TUC urged the Bank of England today to make another interest rate cut after inflation stood stable for another month.

The latest Office for National Statistics (ONS) data showed that consumer prices index inflation remained unchanged at 2.2 per cent in August.

This is the same as a month earlier and below the Bank of England’s projection of 2.4 per cent.

Services inflation, a key indicator of rising living costs, rose to 5.6 per cent from 5.2 per cent.

This was partially boosted by air fares which increased by more than a fifth — 22.2 per cent — between July and August.

The price of cinema, theatre and concert tickets also rose 9.2 per cent in August compared to 12 months earlier. 

The Bank of England is due to decide on whether it will hold its rates at 5 per cent on Thursday.

Monica George Michail at the National Institute of Economic and Social Research (NIESR) said: “Given that inflation is set to gently rise towards the end of the year, and that underlying inflation remains elevated, this reduces chances of a rate cut tomorrow, and new developments will be closely monitored by the monetary policy committee.”

But TUC general secretary Paul Nowak said: “With inflation unchanged and broadly at target, and GDP growth at zero for three of the last four months, the time is right for the Bank of England to make another rate cut. 

“Households are in desperate need of relief, with several years of steep price rises coming on top of the longest pay squeeze in modern history. 

“Inflation is now falling across most high-level categories and the economy needs the boost that a further rate cut would bring.”