UK inflation unexpectedly accelerated in July, stoking fresh fears about the cost of living and all but extinguishing hopes for another interest rate cut this year from the Bank of England.

The cost of food and non-alcoholic beverages rose 4.9% in the year to July, up from 4.5% in the year to June. It was the fourth month in a row in which food and drink inflation had risen, bringing prices to their highest since February 2024.

Higher food and airfare prices pushed U.K. inflation above expectations in July, official figures showed Wednesday, which has tempered market expectations that the Bank of England will cut interest rates again this year.