On a monthly basis CPI rose by 0.3%, the same rate from August of last year.

The 2% target was hit in the June of this year, while in August 2023 CPI stood at 6.7%.

CPIH for the 12 months leading to August rose by 3.1%, also unchanged from July, while on a monthly basis CPIH rose by 0.4%, the same rate as August 2023.

The largest upward contribution to monthly CPI and CPIH annual rates was from air fares, while the largest downward contribution came from motor fuels, restaurants and hotels.

Daniel Austin, CEO and co-founder of ASK Partners, said: “Despite inflation remaining above the 2% target, which may concern investors and consumers, the property sector has shown remarkable resilience in recent months.

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“Interest rates tomorrow are now expected to hold steady, which could help reduce borrowing costs. Meanwhile, despite a rise in properties for sale, activity suggest we are still in a buyers' market.

"Sustained above-target inflation will, however, likely keep development costs elevated, posing challenges for new projects.

“This presents a significant hurdle for the new government as it aims to stimulate construction and address the housing shortage. The BoE must navigate a delicate balance between reducing borrowing costs and managing inflationary pressures.

 "As a lender to property developers and investors, we've seen firsthand the impact of rising rates and inflation volatility on borrowers. Nonetheless, the property market's resilience has been a positive indicator despite these headwinds."