Cooling inflation in India and tariff-induced price pressures in the U.S. are cementing a downward bias on dollar-rupee forward premiums, according to analysts.

UK inflation unexpectedly rose to its highest level since January 2024 as food prices jumped, keeping some pressure on the Bank of England as it looks to continue dialing down interest rates.

Prices rose by 3.6% in the year to June, the steepest rise in inflation since January 2024, the Office for National Statistics said. That marks a significant rise from the 3.4% rate in May. The rate at which prices rise matters to shoppers, whose money doesn't go as far if goods and services are becoming rapidly more expensive.

It's a trove of information for portfolio managers and macro-watchers to gauge, and trade policy news headlines are likely to continue breaking. On July 9, President Trump announced a surprise 50% levy on copper imports, followed by a steep 50% duty on Brazil. 1 Together, it put the materials sector in focus.

While U.S. inflation figures didn't surprise market watchers and investors, the fact that the downbeat expectations were realized still weighed on stocks.

The inflation data is top of the pile this morning, the first of two important data releases in two days for the UK. It’s on the slate at 7 a.m. Headline CPI is seen sticking at 3.4% for June, the same as in May.

Consumer prices posted the biggest increase in June in five months and are likely to keep the Federal Reserve from cutting interest rates soon, but there only scattered signs of tariff-related inflation.