The core consumer price index, a key measure of inflation watched closely by the Federal Reserve, jumped to 3.1% in July, marking the largest gain in six months as companies grapple with President Donald Trump’s trade war.

Inflation held steady in July as the headline figure for the Consumer Price Index was at 2.7% year-over-year, unchanged from June and lower than the expected 2.8% growth.

Prices in the UK rose by 3.8% in the year to July, driven mainly by a jump in the price of air fares and food. That means inflation is at its highest level since January 2024 and still far above the Bank of England's target of 2%,