According to Jinshi Data, the UK CPI data rose to 2.2% in July, higher than the Bank of England's 2% target. The market expected 2.3%. When the Bank of England cut interest rates from a 16-year high of 5.25% earlier this month, it said that the 2% inflation data in May and June may mark the low point of inflation.
The Bank of England expects CPI to rise to 2.4% in July as the impact of a sharp drop in energy prices fades in 2023, reaching around 2.75% by the end of this year before falling back to 2% in the first half of 2026.
UK inflation hit a 41-year high of 11.1% in October 2022, due to a surge in energy and food prices following the Russia-Ukraine conflict, as well as labour shortages and supply chain disruptions caused by the coronavirus pandemic.