U.K. Inflation Unexpectedly Holds Steady

The U.K.’s annual rate of inflation in September unexpectedly held at the pace of the previous month, raising the chance that Bank of England policymakers could cut interest rates later this year, despite price rises remaining at a level still well above the central bank’s target.

Consumer prices were up 3.8% compared with the same month of last year, the Office for National Statistics said Wednesday, almost double the central bank’s 2% target and the same rate as August. Economists polled by The Wall Street Journal expected a higher rate of 4.0%.