0851 GMT - U.K. inflation is beginning to feel the effects of a global shortage of memory chips, driven by booming AI demand, ING's James Smith says in a note. While headline inflation for June fell to a 15-month low, core inflation came in slightly above expectations. "It looks like 'chipflation' has washed up on U.K. shores; portable device prices spiked by 22% month-on-month, the biggest monthly change since the series began in 2015," the economist says. Still, with food and services inflation cooling, the BOE doesn't look likely to hike rates any time soon, he says. "We expect the Bank of England to hold rates throughout 2026 before looking to cut rates gradually from next spring." (don.forbes@wsj.com)

(END) Dow Jones Newswires

July 22, 2026 04:51 ET (08:51 GMT)

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