UK consumer prices rose 3.8% in July from a year earlier, up from 3.6% in June and above the 3.7% consensus of economists, the Office for National Statistics said. On a monthly basis, inflation increased 0.1%. Underlying pressures also intensified: core CPI, which strips out volatile items, climbed to 3.8%, while services inflation accelerated to 5.0%. The retail price index advanced 4.8% year-on-year. The figures mark the highest headline rate since January 2024 and leave Britain with the fastest pace of price growth among the Group of Seven economies. The data arrive less than three weeks after the Bank of England lowered its policy rate to 4.0% in a narrow 5–4 vote. Traders have pushed expectations for the next reduction into early 2026 as policymakers warn inflation could peak near 4% in September and remain above the 2% target until mid-2027.