UK headline inflation jumped to 2.9% in July as a 13% energy price cap increase drove gas inflation to 14.7%. Core inflation held flat at 2.6%, and the Bank of England's rate-setters split 6-3, with three of nine now pushing for a hike.
AMP chief economist Shane Oliver sees July's energy-driven CPI rebound to a four-month high of 2.9% leaving the Bank of England on hold even as money markets still fully price a year-end hike. Source
