Jump in energy bills drives inflation to 2.9% - the highest rate for four months
UK inflation has risen to 2.9%, driven largely by increased energy bills, marking the highest rate in four months. Economists are debating whether this will influence the Bank of England's interest rate decisions, though some believe price pressures remain contained.
Why it matters
Inflation and interest rate fluctuations directly impact household mortgage costs and the broader economic outlook for the UK.
What the inflation rate could mean for interest rates and mortgages published at 08:27 BST 08:27 BST Dharshini David Deputy economics editor
Among the bills many households have to contend with are mortgages and rent - so where do the latest inflation figures leave the Bank of England?
Remember, interest rate changes take a while to impact prices, with the Bank setting rates to influence future inflation.
And there is little in these figures to change its belief that, in the medium term, inflation will come down to its 2% target.
Actually, the fact that the likes of food inflation has remained muted may give it hope price pressures remain fairly contained.
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