UK inflation rises to 2.9% in July after energy price cap reset
AI Market Summary
UK CPI accelerated to 2.9% YoY after the energy price-cap reset, keeping inflation above the BoE's target and lifting attention to policy tightening risk. Although services inflation eased and core remained moderate, higher gilt yields (5.155% on medium-term issuance, highest since 2007) signal tighter financial conditions. Near-term focus shifts to September BoE expectations, supporting GBP rate sensitivity and increasing cross-asset volatility.
Impact level
● Medium
Affected assets
NCFXGBP2USD/USDT-0.14%
AI Insight · NCFXGBP2USD/USDTAI Insight
▼ Bearish
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UK consumer price inflation rose to 2.9% year on year in July, up from 2.6%, staying above the central bank’s 2% target for 22 consecutive months. Services inflation eased to 3.4%, while core inflation stood at 2.6%. The government also sold medium-term gilts at a yield of 5.155%, the highest for such debt since 2007.
