UK inflation expected to have risen in August as cost of living squeeze tightens – business live

AI desk brief

UK inflation is expected to rise to 3.1% in August from 2.9%, mainly driven by higher fuel costs after the jump in oil prices since the Iran war began. The pickup could add to pressure on UK borrowing costs, with 10-year gilt yields already at their highest since 2007, while the broader G7 bond sell-off and firmer US inflation reinforce a higher-yield backdrop that is typically negative for precious metals.