UK CPI inflation rebounds to 2.9% in July, erasing June's disinflationary dip

UK CPI inflation rose to 2.9% in the 12 months to July 2026, up from 2.6% in June, according to ONS data released 19 August. June's 2.6% had been the weakest annual reading since March 2025. The 0.3-point snap-back puts inflation a full percentage point above the Bank of England's 2% target, clouding the case for rapid rate cuts.