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# Inflation holds at 2.2% in August 2024
- URL: https://wisener.net/inflation-holds-at-22-in-august-2024/
- Published: 2024-09-17T23:00:00.000Z
- Updated: 2026-10-12T18:27:31.000Z
- Description: Inflation remained steady at 2.2% in August 2024. There was hope it would dip below 2% by this point in the year, but holding instead of increasing is still welcome. It's still good news for interest rates, we hope.
- Author: Lee Wisener
- Tags: Inflation, #Import 2026-10-12 18:55

Despite inflation not falling to or below 2%, it may still be good news for future interest rate reductions. There remains hope that the current stability of inflation leaves the door open for at least one more 0.25% reduction in interest rates before the end of this year.

![](https://wisener.net/content/images/wordpress/2024/09/inflation2_1728808251.png)

## Why is inflation not falling further?

Service price pressure is the key reason for inflation not falling further than expected. Services inflation rose to 5.6% from 5.2%. Airfares rose 22% from July to August. Noted as the 2nd most significant rise on record. Although this is no real concern, it’s always been a fairly volatile market.

Core inflation, a measure without the volatility of food and energy costs, was 3.6%, up from 3.3%. 

Annual earning growth without considering bonus payments fell to 5.1% from 5.4%.

The economy overall is struggling. Output began to stagnate in June and that has remained so since.

## Interest rates

Analysts predict more interest rate cuts as we enter the Winter, and they may come faster than we have seen so far.