Britain's FTSE 100 held steady on Wednesday as gains in consumer and healthcare sectors offset losses in energy and mining stocks, while investors assessed a hotter-than-expected inflation report.

Prices in the UK rose by 3.8% in the year to July, driven mainly by a jump in the price of airfares coinciding with the school summer holidays. That means inflation is at its highest level for 18 months and still far above the Bank of England's target of 2%. The Bank's latest forecast expects inflation to peak at 4% in September.

The British pound rose marginally against the dollar and euro on Wednesday after data showed inflation hit its highest in 18 months in July, with markets not fully pricing the next rate cut from the Bank of England until well into next year.

Markets ended last week largely unfazed by a hotter wholesale inflation print and signs of firming consumer prices, but some economists warn the underlying story is more concerning than investors seem to believe.

South Africa's consumer price inflation rose to 3.5% year-on-year in July, driven to its highest level since September 2024 by higher food and fuel prices though still within the central bank's target range.

According to Bankrate, inflation has climbed 22.7 percent since 2021, while Americans' wages have risen just 21.5 percent.