July’s UK CPI print aligns with expectations, easing pressure on the Bank of England as core inflation ticks slightly higher.
UK consumer prices rose 2.9% year-over-year in July, unchanged from June’s revised 2.6% print and matching economist forecasts. Core inflation, excluding volatile items, edged up to 2.6% from 2.5% expected, signaling persistent underlying price pressures.
The data follows a period of cooling inflation, with June’s CPI at 2.6% after peaking above 11% in late 2022. Markets had anticipated a steady reading, though the slight core uptick may temper expectations for near-term rate cuts.
Traders are now focused on upcoming central bank commentary, including RBA Deputy Governor Andrew Hauser’s remarks, as inflation remains a key driver for monetary policy.