UK inflation accelerates to 3.1% in August from 2.9% in July

UK CPI accelerating to 3.1% from 2.9% strengthens the case for tighter-for-longer Bank of England policy and reduces near-term rate-cut expectations. This typically pressures UK duration and rate-sensitive equities while supporting GBP via higher implied yield differentials. The release can also lift near-term rates volatility as markets reprice the policy path and term premia.