UK inflation snaps back to 2.9% in July, clouding rate-cut case

UK CPI inflation rose to 2.9% in the year to July 2026, up from 2.6% in June, ONS data shows. June's reading had been the lowest since March 2025. The 0.3-point rebound leaves inflation a full point above the Bank of England's 2% target, complicating the case for rapid rate cuts.