Investors scaled back bets on an August Bank of England base rate cut after fresh data showed signs of persistent inflation pressures in some areas of the economy.

More than half a million people are paying a marginal tax rate of 60 per cent on the next pound they earn.

More people than ever are being stung by the 60 per cent tax trap, which affects those earning between £100,000 and £125,150 a year, according to Bowmore Financial Planning.

Reckitt has warned short-terms sales of its baby formula powder are likely to be affected after a tornado struck the consumer giant's third-party warehouse in the US.

The group told investors the Indianna-based site, which houses its Mead Johnson formula, had sustained 'significant damage', but confirmed that all employees present were safe.

The Mount Vernon warehouse is currently unoperational after the tornado struck on 9 July.

Rachel Reeves’ choice of language to describe the Tory economic narrative and the timing of her intervention is strange.

‘Gaslighting’ is a trendy word with obscure origins and meaning. It has little resonance for ordinary citizens.

Labour’s plans to turbocharge housing developments and build 1.5 million new homes may be welcome news for first-time buyers but it will strike fear into the hearts of many existing homeowners.

Fields that have offered a quiet backdrop to your home and unobstructed views could be at risk.

The sell-off among luxury stocks shows little signs of slowing.

On another bleak day for the sector, Cartier owner Richemont and Hugo Boss became the latest fashion brands to sound the alarm over weak demand.

The boss of Ocado has urged disgruntled shareholders to keep the faith as the group posted rising sales and narrower losses.

Tim Steiner said investors should have belief in the online supermarket and technology firm despite shares falling almost 90 per cent in less than four years.

‘I’m not concerned about investors losing confidence because they shouldn’t be losing confidence,’ he declared. ‘We’ve got a clear plan and we’re executing that clear plan.’

Babcock has posted a 34 per cent jump in annual profit, helped by strong operating performance in nuclear, land and aviation sectors.

The company said underlying operating profit for the 12 months to the end of March was £237.8million, as the British engineering company reiterated its medium-term guidance.

Net debt stood at £435million, down £129million on the previous year, driven by strong cash generation.

Reckitt has warned short-term sales of its Mead Johnson baby formula powder are likely to be affected after a tornado struck a third-party warehouse in Indiana that sustained significant damages.

The Mount Vernon warehouse, currently not operational after the tornado struck on 9 July, is an important site for Mead Johnson Nutrition business that contains both raw materials and finished products, Reckitt said.

Reckitt said: 'Whilst Nutrition sales will likely be affected in the short term, we are working closely with all our stakeholders including customers and suppliers, to minimise disruption, by leveraging our global supply chain and managing inventory at our other North American Nutrition warehouses and held by our retail partners.  

'Additionally, Reckitt holds comprehensive property damage and business interruption insurance, which we currently expect will largely offset the impact on earnings.

'We will provide a further update at our half year results on 24th July.'

Luke Bartholomew, deputy chief economist at Abrdn:

'Today’s inflation report will keep the Bank of England’s August rate decision on a knife edge.

'The strength of hotel price growth is suggestive of a so-called Taylor Swift effect on prices, but policy makers will almost certainly look through this kind of dynamic.

'More fundamentally, the ongoing stickiness of services inflation will leave the Bank wondering how long inflation will stay at the 2% target once favourable base effects have passed and domestic price pressures start to drive headline inflation again.

'Tomorrow’s wage data will provide more clues about these price pressures, and the Bank will hope to see a further moderation in wage growth. For now, we continue to expect a rate cut in August, but this will require the upcoming data to cooperate.'

Matthew Chapman, associate partner at McKinsey & Company:

'Headline inflation remains on target. However, elevated levels of core inflation and services inflation are likely to pose a headache.

'Persistent services inflation is creating upward pressure on the overall rate of inflation. Price increases in summer spend areas such as package holidays (8.7%), holiday centres (10.9%), and cinemas, theatres and concerts (7.4%) are all in high single and even double digits. And these are areas where consumers seem more inclined to splurge.

'Over 65% of consumers are planning to spend the same or more on experiences like hotel/resort stays, short-term house rentals, out of home entertainment and restaurants over the next couple of months.

'On the other hand, food inflation has dropped considerably since the beginning of the year. And clothing and footwear price increases have continued to slow, coinciding with the start of the summer sales period, hopefully putting consumers in a better position and offering some relief.

'However, with prices still significantly higher than they were three years ago, many households are likely to still be feeling the pinch, budgeting more for essentials like fuel. They’re focused on looking for opportunities to reduce non-discretionary spending by trading down and increasing their savings.

'It may still take time to bring inflation fully under control. In the meantime, businesses should look for opportunities to focus on how they can manage economic pressures to protect margins while providing value to consumers.'

Consumer price inflation held at the Bank of England’s 2 per cent target last month, Office for National Statistics data shows.

The reading, which was slightly higher than forecasts of 1.9 per cent, piles further pressure on the bank to begin cutting interest rates at its Monetary Policy Committee meeting in August.