British interest rates likely heading much higher on inflation reading 

Core inflation in July was unchanged at 6.9% from June

Bank of England: Markets bet bank rate will hit 6%, up from 5.25% currently, much higher than in the eurozone or the US.

Sterling rose sharply as the latest British inflation numbers reinforced bets that the Bank of England will likely hike interest rates again.

Sterling surged 0.35% against the dollar to $1.275 and climbed to 85.68 pence against the euro. The headline rate of UK consumer price inflation slowed to 6.8% in July, but core inflation, which strips out volatile food and energy prices, was unchanged at 6.9% from June, and higher than economist expectations for a reading of 6.8%. Services inflation picked up to 7.4% from 7.2% in June.