so UK inflation is just going up the now markets expect the bank of England to cut interest rates even more aggressively what’s going on so this is all about expectations before the numbers came out markets had expected CPI to rise at 2.3% on the year in July instead it Rose at 2.2% so as a result markets are now pricing in ever so slightly more aggressive rate Cuts than they were before the numbers came out the other interesting thing you’re going to see is that towards the end of this year inflation’s actually and they keep going up may even reach 2.7% but the bank of England already knows that and it’s looking through that why is that because monetary policy operates with what’s called a lag so that means that what the bank does today won’t take effect from tomorrow as long as they confident that it’s going in the right direction overall we’re starting to plan ahead for the state of the economy a year from now in summary the reason markets are no more confident interest rate Cuts despite inflation going up is because inflation went up by less than markets had expected