United Kingdom economy sees eighth consecutive quarter of growth amid rising inflation

The United Kingdom's economy showed continued growth in the quarter ending in July 2026, with GDP increasing by 0.4%. This marks the eighth consecutive quarter of quarterly growth. The expansion was primarily driven by the services sector, which grew by 0.6%, while manufacturing and construction both saw declines of 0.5%.

Simultaneously, inflation in the UK accelerated in August 2026, reaching an annual rate of 3.1%, in line with market expectations. Monthly consumer prices rose by 0.5%. Core inflation, which excludes volatile food and fuel components, increased by 0.3% on a monthly basis, with an annual trend of 2.6%. Producer prices also showed upward pressure, rising 0.7% monthly and 3.7% annually.