It was around ~36% before that so it is a notable step up in terms of market pricing. And it sounds just about right to be honest. The overall report was a soft one by all means. Core annual inflation eased further, although is still above the 3% mark. But services inflation, one of the key focus points for the BOE, eased to 5.2% from 5.7% previously. So, there is progress.
The only thing standing in the way of convincing markets of a back-to-back move is the BOE itself mostly. We'll have to see if they will change up their language in the weeks ahead. As for the August CPI report, we will only be getting that on 18 September - just one day before the next BOE decision. So, any shifts in market expectations might go right down to the wire.
