uk inflation holds steady at 2.2% in the year to august, according to official figures. on fed watch — markets around the world prepare for a cut in us interest rates, but how low will they go? welcome to business today. we start in europe, where we've had a double dose of inflation numbers. we'll hear about those uk inflation figures injust a moment, but first let's have a look at the eurozone. in the last hour, the inflation rate for the euro block, for august came in at 2.2% down from 2.6% injuly. this comes off the back of that decision earlier in the week by the european central bank to cut interest rates by a quarter percentage

point to 3.5%. so have those eurozone nations turned a corner on inflation? joining me now is charles younes, deputy chief investment officer at financial analysis company fe info. good to have you with us. make that link for us. we saw that cut earlier in the week, and it seems as though it backs up that decision they made earlier. yes, i fully agree with you on that point. the ecb has been very clear, they have been slow in cutting rates, and really it is about inflation. so the number given this week confirms that the ecb needs to be very slow in cutting rates. it that the ecb needs to be very slow in cutting rates.- slow in cutting rates. it also suggests — slow in cutting rates. it also suggests that _ slow in cutting rates. it also suggests that the _ slow in cutting rates. it also suggests that the european | suggests that the european central bank had a very different tactic versus the bank of england and the us federal reserve. what does it tell about their thinking and

whether their caution has paid off? i whether their caution has paid off? ~' . ., . , whether their caution has paid off? ~ _, ., , ., off? i think contrary to the uk and the us, — off? i think contrary to the uk and the us, the _ off? i think contrary to the uk and the us, the eurozone - off? i think contrary to the uk and the us, the eurozone is i and the us, the eurozone is facing different economic backgrounds. the eurozone has been slowing down more aggressively than the us, contrary to the uk, where the economy is recovering. the ecb is facing different economic challenges. but inflation has been more controlled in the eurozone since 2022, and therefore they didn't hike as much as the fed or the bank of england, therefore they need to be more gradual in the rate cut have to permit in the coming months. ., . ~' have to permit in the coming months. ., ., ~ ., months. you talked about the different pressures _ months. you talked about the different pressures in - months. you talked about the different pressures in the - different pressures in the eurozone. why is it different? what are they facing, unlike the us and the uk, which means that inflation has acted differently there? if that inflation has acted differently there? if you think about the job _ differently there? if you think about the job market, - differently there? if you think about the job market, the - differently there? if you think about the job market, the job about thejob market, thejob market in the eurozone has been cooler and less sticky than in

the uk and the us, the pressure is be more controlled, i would say. additionally, it was driven by the base effect on the energy markets, as opposed to the sticky services component. it was easier for inflation to go down quicker than in the us and uk. good to talk to yom _ than in the us and uk. good to talk to you. thank _ than in the us and uk. good to talk to you. thank you. - here in the uk, it's a similar picture, with inflation holding steady, despite a rise in the cost of flights. the latest figure for the year to august came in at 2.2%, the same figure as for the eurozone. so slightly above the bank of england's target of 2%. core inflation, which strips out the impact of volatile items like food and energy, did rise, though — to 3.6% — in the 12 months to august. that's up from 3.3% injuly. the bank meets tomorrow to decide on whether to cut interest rates. these figures are likely

to play into that decision, but expectations are that the bank will hold off from cutting rates just yet. let's unpack this a bit more with suren thiru, head of economics at the british chambers of commerce. good to have you here. no great surprise, all eyes really on what the bank of england does tomorrow in light of what is heard today. it seems like it will hold off tomorrow, though. that's right. inflation is in quite _ that's right. inflation is in quite a _ that's right. inflation is in quite a difficult phase at the moment because while we have seen _ moment because while we have seen falls — moment because while we have seen falls in the headline rate in the — seen falls in the headline rate in the last year, due to a lower_ in the last year, due to a lower energy costs, what we are seeing _ lower energy costs, what we are seeing is — lower energy costs, what we are seeing is some significant pressures. that is what will concern, _ pressures. that is what will concern, they will not be cutting _ concern, they will not be cutting the rates until later

this— cutting the rates until later this year. cutting the rates until later this year-— this year. when we look at these numbers, _ this year. when we look at these numbers, it - this year. when we look at these numbers, it gives i this year. when we look at these numbers, it gives us this year. when we look at i these numbers, it gives us a sense of what we were spending money on, no great surprise that we were spending on things like flights and food and services, but thatjump in airfares is pretty marked, the second—largest since records began in 2001. second-largest since records began in 2001.— began in 2001. that's right, but that is _ began in 2001. that's right, but that is one _ began in 2001. that's right, but that is one of _ began in 2001. that's right, but that is one of the - began in 2001. that's right, but that is one of the more | but that is one of the more volatile _ but that is one of the more volatile elements of inflation. when — volatile elements of inflation. when the bank is looking at some — when the bank is looking at some of— when the bank is looking at some of these figures, they will look_ some of these figures, they will look through some of that volatility, because we saw putts — volatility, because we saw pulls in _ volatility, because we saw pulls in a similar inflation measure. but there will be concern _ measure. but there will be concern around service inflation rising in august, and they— inflation rising in august, and they wiii— inflation rising in august, and they will be looking at how that — they will be looking at how that plays out in coming months. in contrast to us economy, the uk is pretty robust _ economy, the uk is pretty robust at the moment. what is the underlying _ robust at the moment. what is the underlying picture - robust at the moment. what is the underlying picture telling l the underlying picture telling us right now? are we in a period where we will see

progressive rate cuts into the winter as a result of these figures we are seeing today? we exect figures we are seeing today? we expect the bank to take a slow and steady approach to cutting interest — and steady approach to cutting interest rates. we expect the next — interest rates. we expect the next one _ interest rates. we expect the next one will happen in november and next one will happen in novemberand then next one will happen in november and then pick up pace into next— november and then pick up pace into next year. that will be closely _ into next year. that will be closely linked to what happens to inflation. if inflation ticks _ to inflation. if inflation ticks upwards in the course of this year. _ ticks upwards in the course of this year, especially in october, that were given increased to inflation. as you move — increased to inflation. as you move into _ increased to inflation. as you move into next year, we expected to moderate back towards the 2% target. good to talk to you- _ towards the 2% target. good to talk to you. we _ towards the 2% target. good to talk to you. we will— towards the 2% target. good to talk to you. we will keep - towards the 2% target. good to talk to you. we will keep a - talk to you. we will keep a close eye on what happens with interest rates in the uk tomorrow. there is a theme to the show today, we are talking about inflation and interest rates. let's turn to the us now, where the federal reserve is poised to cut rates for the first time in four years. although the size of the move is unknown, nearly all economists and market watchers agree that america's central bank

is turning the corner on its own fight against inflation and shifting its focus to protect the job market. to find out what it means for us consumers and businesses, michelle fleury visited york, pennsylvania. jennifer, the owner of this company, is to familiar with the burden of higher borrowing costs. finally, that is set to change. forthe costs. finally, that is set to change. for the first time in four years, interest rates are about to come down. for the maker of barbecue style source, who visited new york last year, she has been using her red card to fund her business. mr; to fund her business. my monthly _ to fund her business. my monthly costs _ to fund her business. ij�*i: monthly costs have to fund her business. m monthly costs have increased tremendously, so i would like to see them come back down. whenjerome powell visited this

market, the federal reserve was watching closely to see if its interest rate hikes were really cool inflation, even though it was tough on small businesses. that is about to change, mr powell and his colleagues are set to cut interest rates. in york, the arrival of autumn marks a change. after raising interest rates 11 times, america's central bank is all but certain to start to unwind that, but how quickly they go down from here is still up for grabs. down from here is still up for crabs. . , ~ , down from here is still up for crabs. . , ~' , ., grabs. perfectly like this on our grabs. perfectly like this on your porch. _ grabs. perfectly like this on your porch, and _ grabs. perfectly like this on your porch, and then - grabs. perfectly like this on your porch, and then we . grabs. perfectly like this on i your porch, and then we price it less — your porch, and then we price it less than _ your porch, and then we price it less than picking up the pumpkins themselves. at this farm shep. — pumpkins themselves. at this farm shop, the _ pumpkins themselves. at this farm shop, the rebirth - pumpkins themselves. at this farm shop, the rebirth of- pumpkins themselves. at this farm shop, the rebirth of thel farm shop, the rebirth of the economy as inflation pulls closer to the official target of 2% is yet another moment of change. of 2% is yet another moment of chance. ~ of 2% is yet another moment of chan . e. ~ . of 2% is yet another moment of chance.~ . , , change. we want stability, ri . ht? change. we want stability, right? isn't _ change. we want stability, right? isn't that _ change. we want stability, right? isn't that what - change. we want stability, - right? isn't that what everyone wants? — right? isn't that what everyone wants? that means security. stabiiity— wants? that means security. stability means you can predict what _ stability means you can predict what your— stability means you can predict what your business will do, how your— what your business will do, how your community will grow, all those —

your community will grow, all those things. that means you are secure. those things. that means you are secure-— are secure. still, on the outskirts _ are secure. still, on the outskirts of _ are secure. still, on the outskirts of town, - are secure. still, on the outskirts of town, the i are secure. still, on the i outskirts of town, the first rate cuts since the pandemic may not fix the housing market. ben is the director of marketing at keystone custom homes. despite the mortgage squeeze, house prices here have remained high.— remained high. economics 101, we are seeing _ remained high. economics 101, we are seeing not _ remained high. economics 101, we are seeing not enough - remained high. economics 101, i we are seeing not enough supply and if the demand increases because of affordability, it's even better. assuming the supply remains static, as it is, we are anticipating that it will push pricing even higher. so rates on their way down, a potential boost to consumers and businesses. the question now is, how low will they go? let's now turn to india where the national census will soon be underway after a delay of nearly three years. this provides critical data set

for economic policymaking but was last updated almost 13 years ago. our india business correspondent, nikhil inamdar, has the latest from mumbai. the once in a decade census was last conducted way back in 2011. it was due in 2021, but was delayed by the pandemic and other hurdles. the government has drawn sharp criticism from economists and policymakers for dragging their feet on a new survey. a census is crucial to plug key data gaps, while it gives policymakers information on a range of indicators from housing and urbanisation and mortality rates among others. without it, resource allocation in the budget becomes a difficult task. the process of conducting the census is likely to begin in september, according to some reports, and

it will take at least 18 months for the new survey to be completed, given how complex the task is. in other news: the food container firm tupperware has filed for bankruptcy as it struggles to survive in the face of sliding sales. the us brand said it will ask for court permission to start a sale of the business and that it aimed to continue operating. the company's shares have fallen by more 50% this week after reports that it was planning to file for bankruptcy. tupperware saw a surge in sales during the pandemic, as more people cooked at home, but that did not last and sales have continued to dwindle. an eu court has annulled a fine of 1.49 billion euros imposed on google in 2019 over online searches. the european commission ruled that google had abused its market dominance by restricting third—party rivals from displaying search adverts in the ten years to 2016.

but the luxembourg—based general court said the european commission had committed errors in its assessment. let's take a look at the markets. of course, all eyes will be on what the federal reserve will do as far as interest rates are concerned. michelle posed that question, how noble they go? how low will interest rates for? i can show you the numbers, pretty aggressive is the expectation. how though, we will get the data later. lots of expectations that the bank of expectations that the bank of england will hold off on lowering rates here. all of them moving slightly closer to moving in lockstep, whether it is the european central bank, the uk central bank or the federal reserve in the us. this is what is happening in europe right now, you can see the ftse

of about 0.5%. we will keep a close eye on those. see you very soon.

hello, i'm sarah mulkerrins at the bbc sport centre. we'll start with the sad news from the world of football that 1990 world cup hero salvatore "toto" schillaci has died at the age of 59. the italian scored six goals to win the golden boot at the world cup. italy lost in the semifinals on home soil, but schillaci was also awarded the golden ball as the best player and gained hero status. he was diagnosed with colon cancer in 2022. domestically schillaci helped juventus to claim the coppa italia and uefa cup in 1990 before winning the latter trophy again four years later

with inter milan.