1015 GMT - Yields on U.K. government bonds or, gilts, are likely to be mainly driven by developments in the Middle East in the near term, Aberdeen's Matthew Amis says in a note. The U.K. inflation data for July shows annual headline inflation increased to 2.9% from 2.6% in June, primarily driven by higher energy prices. "The data doesn't show any new sign of second-round inflationary effects from the Middle Eastern conflict," Amis says. As a result, the Bank of England is expected to keep interest rates on hold at 3.75% in 2026, unless the Middle East conflict escalates, Amis says.