"The Fed is more worried about the labor market and less concerned about inflation at this point," a Glenmede analyst said.

Switzerland’s government slashed its inflation forecasts, a move in line with expectations that the central bank will cut interest rates again when officials meet next week.

Here’s how inflation and the cost of borrowing have changed since the Fed started raising interest rates in March 2022. After peaking at 9.1% in June 2022, inflation has eased, falling to a three-year low of 2.5% in August, just above the Fed’s 2% target rate.

Prices in the UK went up by 2.2% in the 12 months to August, the same rate as in the year to July. The Bank of England has a target to keep inflation at 2%. Inflation is the increase in the price of something over time. For example, if a bottle of milk costs £1 but is £1.05 a year later, then annual milk inflation is 5%.

British inflation held steady in August but sped up in the services sector which is closely watched by the Bank of England, data showed on Wednesday, adding to bets that the central bank will keep interest rates on hold on Thursday.

The UK’s inflation rate held steady at 2.2% in August, according to data released by the Office for National Statistics (ONS) on Wednesday. This figure, unchanged from July, aligns with predictions made by economists in a recent Reuters poll.