UK consumer-price inflation rose from 2.6% in June to 2.9% in July, largely reflecting a 13% rise in the household energy price cap. The increase showed how the Middle East energy shock was feeding into living costs, but softer details and a result broadly in line with forecasts reduced the urgency for an immediate Bank of England response. Sterling rose 0.1% to about $1.355, while 10-year gilt yields fell three basis points and markets continued to price roughly one quarter-point rate rise by year-end.