Inflation & Monetary Policy - The Bank of England is likely to hold its current policy through the rest of 2024 into 2026, and a November rate cut is less likely [1] - Rising inflation presents a challenge for the Bank of England, which already anticipates a peak in September [2] - Supply-side factors, including school holiday timing, contribute to inflation volatility, but the Bank of England may focus more on the labor market and wage trajectory [3][4] - High prices in grocery stores, such as jam and marmalade, may fuel wage demands, a concern for the Bank of England regarding persistent inflation [5][6] - The data does not suggest an immediate end to cautious monetary policy from the Bank of England [7] Labor Market & Wages - The labor market appears to be weakening, potentially reducing pressure from wage demands [4][6] - Firms anticipate lower pay settlements next year [6] - The labor market's condition could influence wage negotiations and potentially mitigate inflation risks [4] Services Inflation - Services inflation remains sticky, but the focus is shifting towards core services, excluding factors like assessed taxes [8][9] - Core services inflation may present a less severe picture than overall services inflation [8][9]