UK August CPI Rises 0.5% Month-on-Month, Up From 0.3%

The reacceleration in monthly CPI is the detail that matters, because it undercuts the disinflation narrative that has driven expectations of easing. It affects rate-sensitive sectors most directly — sterling, gilts and UK-facing risk assets — since a faster monthly print complicates the case for near-term cuts. Whether this is a one-month bump or the start of a firmer trend is the open question; the next monthly reading and any accompanying services or core detail will be what the market keys on.