Key moments
Inflation hits 16-month high
The rate of UK inflation rose to a 16-month high of 3.6 per cent in June, official figures showed.
The data from the Office for National Statistics is above economists’ expectations for the rate to remain unchanged, and makes an interest rate cut in August less likely.
Richard Heys, acting chief economist at the ONS, said: “Inflation ticked up in June, driven mainly by motor fuel prices which fell only sligthly, compared with a much larger decrease at this time last year.
“Food price inflation has increased for the third consecutive month to its highest annual rates since February of last year.”
The Bank of England expects inflation, which has accelerated since April due to higher energy prices, to peak at 3.7 per cent before falling back to its 2 per cent target.
The monetary policy committee has cut interest rates twice this year, from 4.75 per cent to 4.25 per cent. Markets had been betting on another quarter-point cut next month.
Regulators told to ‘take boot off neck of business’
The chancellor Rachel Reeves gives her annual speech at the Mansion House Dinner in the City of London
SIMON WALKER / HM TREASURY
Rachel Reeves has accused over-cautious regulators of acting like “a boot on the neck of businesses” as she announced plans to get ordinary British savers investing in shares.
Addressing 350 City bosses at the annual Mansion House dinner, the chancellor set out a string of reforms designed to allow financial firms to grow faster and urged regulators “not to bend to the temptation of excessive caution”.
You can read more about how the chancellor her plans to get ordinary British savers investing in shares here.
Trump imposes 19% tariff on Indonesia
President Trump has placed a 19 per cent tax on goods imported into the United States from Indonesia under a new agreement with the country and said more deals were in the works.
The pact with a minor trading partner is among the few ahead of an August 1 deadline for tariffs on most US imports, despite his team touting an effort to bring home “90 deals in 90 days”.
So far, framework agreements have been reached with the UK and Vietnam, and an interim deal has been struck with China to forestall the steepest of Trump’s tariffs while negotiations continue between Washington and Beijing.
Trump said talks with India were moving in a similar direction. Meanwhile, while the European Union is preparing retaliatory measures should talks between Washington and its top trading partner fail.
