Britain’s annual consumer-price inflation unexpectedly accelerated to 3.6 % in June from 3.4 % the month before, reaching its highest level since January 2024, the Office for National Statistics said. Higher motor-fuel, transport and food costs were the main drivers, while core inflation edged up to 3.7 % and services inflation stayed at an elevated 4.7 %. The surprise reading pushed sterling and gilt yields higher and raised doubts about whether the Bank of England will proceed with a widely anticipated quarter-point rate cut at its next policy meeting on 7 August; the benchmark rate currently stands at 4.25 %. The British data followed a report a day earlier showing U.S. inflation also firming. The U.S. Consumer Price Index rose 0.3 % in June from May and 2.7 % on the year, the fastest annual pace since February and up from 2.4 % in May. Energy prices accounted for much of the monthly gain. Together, the figures highlight the difficulty major central banks face in bringing inflation back to their 2 % targets while growth and labour-market indicators soften.