Higher food and airfare prices pushed U.K. inflation above expectations in July. The development has tempered market expectations that the Bank of England will cut interest rates again this year.

Gilts broke out of a week-long slide on Wednesday, surging despite a hot inflation number that threatens to slow the pace of interest rate cuts by the Bank of England.

Florian IeIpo, head of macro at Lombard Odier Investment Managers, discuss sticky inflation in the U.K. and why the situation is different on the European continent.

UK inflation rose in July to the highest annual rate since the start of 2024 when it had hit 4 per cent - here is what it means for households.

The cost of food and non-alcoholic beverages rose 4.9% in the year to July, up from 4.5% in the year to June. It was the fourth month in a row in which food and drink inflation had risen, bringing prices to their highest since February 2024.

Britain's FTSE 100 held steady on Wednesday as gains in consumer and healthcare sectors offset losses in energy and mining stocks, while investors assessed a hotter-than-expected inflation report.

The collection window for last month’s figures was “on or around 15 July”, while school summer holidays in England began on 23 July (eight days later) this year. Last year, collection was “on or around 9 July”, while schools broke up on 25 July (sixteen days later).