The UK 10-year gilt yield eased to around 5.05% as investors assessed the latest inflation and labour-market data for clues on the Bank of England’s policy outlook. Headline CPI rose to 2.9% year-on-year in July from 2.6% in June, matching market expectations, while core inflation remained unchanged at 2.6%. The figures were broadly in line with forecasts and prompted traders to modestly reduce bets on a rate increase before year-end. Recent labour data also pointed to a cooling jobs market, with unemployment unexpectedly holding at 4.9% and payroll employment declining by 86,000 year-on-year. Regular earnings growth was slightly stronger than anticipated at 3.5%. While the UK economy has shown some resilience, elevated oil prices and fading hopes of a US-Iran agreement continue to pose inflation risks. Markets still price at least one BoE hike this year, although most economists expect rates to remain unchanged.