UK inflation was unchanged at 3.8 per cent in August, almost double official target and much higher than elsewhere in Europe. Expected to hit 4 per cent this month. Services inflation dropped to 4.7 per cent last month from 5 per cent in July. Core inflation, which removes volatile food and energy price movements, dipped to 3.6 per cent from 3.8 per cent. But food inflation still over 5 per cent.