British inflation looks set to hit 4% next month, double the Bank of England's target and a level likely to add to nervousness at the central bank about the risk of price growth getting stuck at a stubbornly high rate.

Our analysis of underlying inflation data shows why this cause for concern has grown. The latest figures for UK CPI inflation in June came in higher than expected, with the annual headline figure hitting 3.

Inflation in the UK has risen to an unexpected 3.8%, the Office for National Statistics says. We'll bring you more analysis and reaction on this shortly. Graham Dutton owns 900 animals on his milk farm in Farndon,

Tesco share price continued to hover close to its all-time high making it one of the best-performing companies in the FTSE 100. It has jumped by 40% from its lowest level this year, a trend that may continue after the latest UK inflation report.

The UK saw a later and slightly higher peak in food inflation, but otherwise, the trend is similar. In fact, we think that the annual rate of food inflation, currently 7%, will fall below 1% in ...

The GBP/JPYshowed a minor pullback after strong UK CPI data. It hit an intraday high of 199.43 and is currently trading around 199.25. Intraday trend is bearish as long as the resistance at 200.28 holds.

The Bank of England is widely expected to cut its key interest rate to 4% from 4.25% on Thursday and to lower it once more before the end of the year, despite consumer price inflation rising to close to double the central bank's 2% target in June.

The latest UK inflation number has moved further away from the Bank of England’s target of 2.0%. Therefore, analysts expect the bank to deliver another 0.25% cut at the upcoming August meeting.