UK consumer price inflation remained at 2.9% year on year in July 2025, unchanged from June and matching forecasts, while CPI fell 0.1% month on month, the Office for National Statistics said. Core inflation held at 3.5% and services inflation rose to 4.5%, slightly above the Bank of England’s expectations, keeping inflation above its 2% target. Sterling traded marginally lower and gilt yields eased, suggesting markets saw a greater likelihood of a September rate cut. The combined records also cover earlier snapshots in which inflation rose to 2.6% in November from 2.3% in October, GBP/USD traded near 1.2680 and later 1.2700, and sterling remained supported by expected divergence between cautious Bank of England easing and potential Federal Reserve cuts. The records span different dates and market conditions, so the quoted exchange rates, policy rates and rate-cut expectations are not simultaneous.