Incomes are still trailing inflation four years after the pandemic-era surge in prices, causing a financial pinch for many households.

The economy could soon see a big drop in shelter prices that slashes the current inflation rate by more than half, Rosenberg Research said.

Market-based expectations of long-term inflation were rising on Friday, suggesting the Federal Reserve could be underestimating the risk of future price gains and may be committing a policy error if it cuts interest rates.

This increase was mainly driven by soaring air fares - which jumped by 30.2% - driven by higher school holiday prices - here's why. Meanwhile, food price inflation rose to 4.9% driven by higher prices for goods including beef, instant coffee and orange juice.

Fed minutes from the July 30 meeting don't in general sound like they are setting us up for a rate cut. Market yields were up across the curve on the back of these minutes. Read more

Inflation expectations derived from the bond market were rising on Friday, suggesting simmering concerns about future price gains despite Federal Reserve Chair Jerome Powell's willingness to consider cutting interest rates.

Opendoor Technologies has a challenging business model and, on top of that, has executed it poorly. Higher inflation may keep rates elevated, which would work against Opendoor. The company's CEO recently resigned,

Ben Plowden, chief executive of lobby group Campaign for Better Transport, said: “Today’s inflation figure could mean a big fare rise for rail passengers next year, especially if the Government decides to go with an above-inflation increase like we saw this year.

Higher food and airfare prices pushed U.K. inflation above expectations in July. The development has tempered market expectations that the Bank of England will cut interest rates again this year.

Britain's short-term inflation expectations remain unchanged at 4.0% in August, according to a survey published on Friday by bank Citi and opinion poll firm YouGov.