UK inflation rebounds to 3.8% as strikes halt trains and hospitals

The UK's Office for National Statistics (ONS) surprised markets by reporting that the Consumer Price Index (CPI) rose 3.8% year on year in July, driven by higher fares for transport and the price of medical supplies.

In response, the confederation of unions in the transport sector and public health service (NHS) launched a coordinated 72-hour strike, demanding a real pay increase of 6%, and denouncing that working-class households have accumulated an 11% fall in purchasing power since 2023.