Recent energy price surges tied to the Middle East conflict represent the dominant driver behind trader positioning in the UK annual inflation 2026 market, with the Bank of England’s July Monetary Policy Report projecting CPI to peak near 3.2% in 2026 Q4 before easing. July 2026 CPI printed at 2.9%, up from 2.6% in June, while independent forecasts cluster around 3.1–3.6% for the year amid elevated wholesale gas and oil costs feeding through to household bills and supply chains. Market-implied odds favor the 3.5–3.9% band at 27.1%, reflecting expectations that indirect effects and base comparisons will lift the annual average above recent readings. Loosening labor market conditions and subdued wage growth are seen capping second-round risks, though upside uncertainty around conflict duration keeps lower outcomes such as 2.0–2.4% priced at just 10.7%. Key near-term catalysts include upcoming Ofgem price cap adjustments and BoE communications on monetary policy restraint.
Experimental AI-generated summary referencing Polymarket data. This is not trading advice and plays no role in how this market resolves. · UpdatedU.K. Annual Inflation 2026
3.5–3.9% 27.1%
2.0–2.4% 10.7%
4.5%+ 8%
1.5–1.9% 5.5%
$85,294 Vol.
$85,294 Vol.
<1.0%
<1%
1.0–1.4%
2%
1.5–1.9%
6%
2.0–2.4%
11%
2.5–2.9%
4%
3.0–3.4%
-
3.5–3.9%
27%
4.0-4.4%
2%
4.5%+
8%
3.5–3.9% 27.1%
2.0–2.4% 10.7%
4.5%+ 8%
1.5–1.9% 5.5%
$85,294 Vol.
$85,294 Vol.
<1.0%
<1%
1.0–1.4%
2%
1.5–1.9%
6%
2.0–2.4%
11%
2.5–2.9%
4%
3.0–3.4%
-
3.5–3.9%
27%
4.0-4.4%
2%
4.5%+
8%
This market will resolve according to the percentage change in the Consumer Price Index (CPI) over the 12-month period ending December 2026, according to the monthly ONS report.
The resolution source for this market will be the ONS Consumer Price Index monthly report released for December 2026 (https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/previousreleases), currently scheduled to be released on January 20, 2027. Resolution of this market will take place upon release of the aforementioned data. If no data for the specified month is released by the date the next month's data is scheduled to be released, this market will resolve based on data from the last available month.
You can find this report by choosing the report for the relevant month from the previous releases page for price indices on the ONS website (https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/previousreleases). The relevant figure can be found in the "Consumer price inflation rates" table under the column labeled "CPI 12-month rate (%)" for the relevant month.
Note: the resolution source for this market will be the official monthly ONS CPI news release which reports inflation change over 12-month periods to only one decimal point (e.g. 1.9%). Thus, this is the level of precision that will be used when resolving the market. For the full release schedule, see: https://www.ons.gov.uk/releasecalendar
Market Opened: Jan 21, 2026, 7:24 PM ET
Resolver
0x2F5e3684c...This market will resolve according to the percentage change in the Consumer Price Index (CPI) over the 12-month period ending December 2026, according to the monthly ONS report.
The resolution source for this market will be the ONS Consumer Price Index monthly report released for December 2026 (https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/previousreleases), currently scheduled to be released on January 20, 2027. Resolution of this market will take place upon release of the aforementioned data. If no data for the specified month is released by the date the next month's data is scheduled to be released, this market will resolve based on data from the last available month.
You can find this report by choosing the report for the relevant month from the previous releases page for price indices on the ONS website (https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/previousreleases). The relevant figure can be found in the "Consumer price inflation rates" table under the column labeled "CPI 12-month rate (%)" for the relevant month.
Note: the resolution source for this market will be the official monthly ONS CPI news release which reports inflation change over 12-month periods to only one decimal point (e.g. 1.9%). Thus, this is the level of precision that will be used when resolving the market. For the full release schedule, see: https://www.ons.gov.uk/releasecalendar
Resolver
0x2F5e3684c...Recent energy price surges tied to the Middle East conflict represent the dominant driver behind trader positioning in the UK annual inflation 2026 market, with the Bank of England’s July Monetary Policy Report projecting CPI to peak near 3.2% in 2026 Q4 before easing. July 2026 CPI printed at 2.9%, up from 2.6% in June, while independent forecasts cluster around 3.1–3.6% for the year amid elevated wholesale gas and oil costs feeding through to household bills and supply chains. Market-implied odds favor the 3.5–3.9% band at 27.1%, reflecting expectations that indirect effects and base comparisons will lift the annual average above recent readings. Loosening labor market conditions and subdued wage growth are seen capping second-round risks, though upside uncertainty around conflict duration keeps lower outcomes such as 2.0–2.4% priced at just 10.7%. Key near-term catalysts include upcoming Ofgem price cap adjustments and BoE communications on monetary policy restraint.
Experimental AI-generated summary referencing Polymarket data. This is not trading advice and plays no role in how this market resolves. · Updated



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