UK inflation seen peaking near 3.2%, BoE set to hold rates

UK inflation edged higher in July, but the outlook remains contained. The headline rate is expected to peak around 3.2% next winter, well below the level that would prompt a rate hike.

Food prices are described as remarkably benign and are helping to keep a lid on broader inflation.

Against that backdrop, the Bank of England is expected to leave rates unchanged this year and resume rate cuts next year.