UK Inflation Surges to New 40-Year High in June

Consumer prices in the UK have risen by 9.4% over the past year, increasing pressure on the Bank of England (BOE) to consider a significant rate hike. Despite this, market pricing remains unchanged as a 50 basis point hike is already anticipated for August. The inflation is largely driven by rising food and fuel costs, with a broader impact suggesting persistent inflation. The peak of inflation is expected in the fall, coinciding with rising energy bills. The BOE has indicated a willingness to act more forcefully, with recent data supporting the likelihood of a 50 basis point increase.

When is the peak of inflation expected to occur in the UK?

What did the jobs data and survey from the Bank of England indicate about inflation expectations?