UK inflation: Four things the latest figures tell us

The steady rise in inflation, along with gradual interest rate cuts, suggests a complex economic climate where consumer spending may remain cautious. Companies related to consumer staples and utilities may experience stability, but sectors dependent on discretionary spending could see a downturn due to increased living costs.

As energy and food inflation remains strong, companies in the energy sector may experience mixed outcomes based on global energy market dynamics. If energy costs persist or increase, companies providing alternative energy solutions may benefit from heightened demand as consumers seek stability in their bills.

Conversely, sectors like retail and travel may see slower growth as consumers cut back on spending due to rising costs. Investors in these sectors should be cautious as disposable income declines could lead to disappointing earnings.