Diageo CEO Debra Crew steps down; UK inflation rises to 18-month high of 3.6% – as it happened

Crew leaves after investor disquiet over company's lacklustre performance; UK food prices rise most since February 2024 but economists still expect August rate cut

The pound has gained since the inflation figures were released, while yields on UK government bonds have also climbed.

The pound is up by 0.2% against the dollar at $1.3410. The FTSE 100 index is steady, up by 0.2%.

Is an August rate cut in jeopardy? No, we don't think so. There's enough of a slowdown in GDP and the labour market to warrant a gradual and careful' easing of monetary policy. But the onus now rests on the labour market to shape how far and how fast the MPC can cut this year and next.

Today's CPI data spells more pressure for consumers thanks to the surge in food prices, but the overall picture doesn't quite spell the end for any further rate cuts. Core goods and services inflation was broadly contained, and the focus shifts now to the job numbers tomorrow to see if there are further signs of weakness that might keep the Bank of England on course to ease policy in upcoming meetings.