WS Investor
19 Aug 2026, 09:04
UK Inflation Accelerates to 2.9% in July
UK inflation accelerated in July, adding to concerns that price pressures remain persistent despite signs of easing costs at the producer level.
The Consumer Price Index rose 2.9% year-over-year, matching market expectations but accelerating from 2.6% in June. On a monthly basis, consumer prices increased 0.3%, also in line with forecasts and above the previous 0.1% increase.
Producer-level pressures were considerably weaker. PPI input prices fell 1.7% month-over-month, compared with expectations for no change. The decline was slightly smaller than the previous month's 1.9% fall.
The combination presents a mixed inflation picture: businesses are seeing lower input costs, but consumer inflation is moving higher. For the Bank of England, the acceleration in headline CPI could reinforce a cautious approach toward monetary-policy easing, particularly if stronger consumer-price pressures persist in coming months.
Graph: Office for National Statistics UK
UK inflation accelerated in July, adding to concerns that price pressures remain persistent despite signs of easing costs at the producer level.
The Consumer Price Index rose 2.9% year-over-year, matching market expectations but accelerating from 2.6% in June. On a monthly basis, consumer prices increased 0.3%, also in line with forecasts and above the previous 0.1% increase.
Producer-level pressures were considerably weaker. PPI input prices fell 1.7% month-over-month, compared with expectations for no change. The decline was slightly smaller than the previous month's 1.9% fall.
The combination presents a mixed inflation picture: businesses are seeing lower input costs, but consumer inflation is moving higher. For the Bank of England, the acceleration in headline CPI could reinforce a cautious approach toward monetary-policy easing, particularly if stronger consumer-price pressures persist in coming months.
Graph: Office for National Statistics UK
