UK inflation rises to 2.9% as Iran war fuels living costs squeeze
Gas prices jumped after Ofgem raised the energy price cap 13%, adding £221 to the typical annual household bill, the ONS said.
- UK inflation rose to 2.9% in July, the highest rate since March, pushed higher by a 13% increase in the Ofgem energy price cap affecting household bills.
- The 13% price cap hike increased average annual gas and electricity bills by £221 to £1,862, moving inflation further from the Bank of England's 2% target.
- Food price inflation slowed to 1.3% in July, the lowest in nearly five years, while core Consumer Prices Index remained unchanged at 2.6% from June.
- Victoria Scholar, head of investment at Interactive Investor, forecasts inflation peaking above 3% later this year, potentially forcing the Bank of England to raise interest rates from 3.75% to 4%.
- Finance minister John Healey stated that "Iran war inflation continues to impact prices here at home," as global energy disruptions maintain pressure on the domestic economy.
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UK inflation rises to 2.9% as higher energy bills hit households
UK inflation rose to 2.9% in July as higher gas and electricity prices increased household costs, ending three months of falling annual rates and keeping inflation above the Bank of England’s 2% target. The Consumer Prices Index increased from 2.6% in June, according to the Office for National Statistics. Prices rose by 0.3% during July, compared with an increase of 0.1% in July 2025. CPIH, which includes the housing costs faced by owner-occupie…
Energy Bills Rocket by £221 as UK Inflation Hits 2.9% in Fresh Blow for Millions of Households
UK inflation jumped to 2.9 per cent in July, overshooting the Bank of England's 2 per cent target, as a £221 surge in typical annual energy bills heaped fresh pressure on household finances, official figures showed on Wednesday. The latest reading from the Office for National Statistics followed a 2.6 per cent rate in June and came weeks after regulator Ofgem lifted its energy price cap by 13 per cent from 1 July, taking the average dual-fuel bi…
Fears Grow Over Likely Interest Rate Hike As Inflation Hits 2.9%
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