Inflation Bump Suggests UK Interest Rate Hold in September

UK inflation rose to 2.9% in July from 2.6% in June, according to the Office for National Statistics.

The increase is largely attributed to Ofgem's household energy price cap, which directly affects the consumer price index and has implications for rate expectations.

Markets have adjusted their predictions, with the implied probability of a Bank of England interest rate hold in September increasing to 82% from around 75% the previous day.