UK inflation upswing sparks new rate cut questions

The UK's latest inflation report has caught economists off guard, revealing an unexpected rise in July predominantly fuelled by escalating energy prices. This increase largely goes against previous forecasts that anticipated a cooling of inflation –complicating the Bank of England's roadmap for potential interest rate cuts. The Consumer Price Index (CPI) increased by 2.2%, from a rise of 2% in June. Core and services inflation metrics remain stubbornly high, signalling that underlying price pressures are more entrenched than previously thought. This carries significant implications and inevitably...