City predicts higher UK inflation despite strongest economic growth since post-lockdown spike

Expect BoE to pause on rate cutting

The latest UK inflation data is expected to come in higher for July, casting doubts on further near time rate cuts from the Bank of England.

Forecasters expect the official data from the Office for National Statistics on Wednesday (14 August) to reveal that inflation jumped from 2% to 2.3% in July. Bank of England cuts interest rates by 25 basis points to 5% This comes despite a show of "resilience" from the UK economy over the summer, arguably providing some room for further rate cuts, according to data from consultancy firm BDO. Its Optimism Index rose above 100 for the third consecutive month to levels last seen in mid-2022 - rising slightly to 102.22 from 102.09 in June, marking the third time it...