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πŸ‡¬πŸ‡§ UK inflation jumps to 2.9%, and a split Bank of England is already behind the curve

πŸ‡¬πŸ‡§ UK inflation jumps to 2.9%, and a split Bank of England is already behind the curve

UK headline inflation accelerated to 2.9% in July from 2.6%, driven by a 13% household energy price cap reset. It exposes a Bank of England rate-setting committee that was already split three votes to six in favor of a hike weeks earlier.

Horizontal bar chart of contributions to the change in UK CPIH annual inflation by category, June to July 2026; housing largest positive, transport largest negative.
July’s 2.9% CPI print landed a touch above the Bank of England’s 2.8% forecast, as the Ofgem energy-cap reset outweighed a further easing in services inflation to 3.4%. Source

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