According to official figures, inflation has held steady at 2.2 per cent in the year to August.

Prices for airfares rose but the increase was offset by lower fuel prices and falling costs at restaurants, the Office for National Statistics (ONS) said.

Grant Fitzner, chief economist at the ONS, said inflation "held steady" in August as "various price fluctuations offset each other".

"The main movements came from air fares, in particular to European destinations, which showed a large monthly rise, following a fall last year," he added.

"This was offset by lower prices at the pump as well as falling costs at restaurants and hotels. Also, the prices of shop bought alcohol fell slightly this month, but rose at the same time last year."

Raw material prices also fell last month, driven by lower crude oil prices.

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'Huge relief'

David Murray, financial planning expert at abrdn said: “All signs were pointing to a decline in inflation in August, so to see rates stay at 2.2 per cent – especially after a rise last month – is a huge relief.

“It will leave many wondering whether this is enough to see a cut to interest rates later this week, but the Bank of England will likely need assurance that the Government can stabilise inflation for a while longer.

“This doesn’t take away from the fact that households are still experiencing high prices across the board, however.

"To ease the pain, you could consider exploring different tax allowances to make your money work as hard as possible, whether that’s considering high-yield savings accounts that offer the best interest rates, or keeping your hard-earned cash in ISAs to help boost your net returns.

"If you’re unsure what’s best for you, you might want to speak to a financial adviser who can help you put a plan in place.”