UK inflation climbed for a second month in July, adding pressure on the Bank of England to reconsider its pace of interest-rate cuts.

Where inflation jumped in July – and where it eased - Inflation picked up pace last month for everyday items including eggs, potatoes, breakfast cereals and bread.

The stock markets were unanimously pleased with the latest CPI inflation print. Check out my key takeaways from the latest CPI inflation report.

July’s Consumer Price Index report showed an acceleration in “core” prices that strip out volatile food and energy items.

The FTSE 100 index closed at a record 9189.22 last night but fell 20.26 points to 9168.96 this morning amid a weak performance for markets worldwide. The caution reflected US interest rate jitters ahead of a speech by Federal Reserve chair Jerome Powell on Friday, as well as a rotation from tech stocks.

Consumer prices were up 2.7% in July from a year earlier, unchanged from June’s gain

In July, headline consumer price inflation in the UK rose at an annual rate of 3.8 per cent, above market expectations of a 3.7 per cent rise and stronger than June’s 3.6 per cent increase. It was in line with BoE expectations.

Food prices rose 2.7% on an annual basis last month, the same as the overall inflation rate. Items that have seen big cost increases since last July include eggs, which are up 16.4%; roasted coffee, up more than 14.8%; and ground beef, which is up 11.5%.

Canada’s inflation rate fell to 1.7 per cent in July, slowing slightly more than expected and easing some fears about sticky price growth. Statistics Canada’s consumer price index report on Tuesday said the deceleration was led by a decline in gasoline prices, which reflected the removal of the consumer carbon price.

Japan's core inflation rate in July likely slowed from the previous month but remained above the Bank of Japan's 2% target, a Reuters poll showed, adding to pressure on the central bank to raise interest rates.

After somewhat positive inflation data in July, the chances of the Federal Reserve cutting interest rates in September are at roughly 83%, according to CME Group 's FedWatch tool calculations on Aug. 18. One month earlier, roughly 59% of traders betting on changes in the federal funds rate thought an interest rate cut would occur in September.