Jump in energy bills drives UK inflation to highest rate for four months
UK inflation rose to 2.9% in July, driven primarily by a 13% increase in energy price caps following the US-Iran conflict. While energy costs have surged, food inflation has reached a five-year low, providing some relief to consumers.
Why it matters
Rising energy costs are impacting household budgets and the broader UK economy, illustrating the domestic consequences of international geopolitical instability.
Image source, Getty Images Image caption, Higher energy costs have been driven by increases in the price of gas, contributing to the rise in inflation
Higher energy bills drove UK inflation up to 2.9% in the 12 months to July, the latest figures show.
Gas prices rose at the highest rate in almost four years, the Office for National Statistics (ONS) said, which led to an increase to the energy price cap in July. Energy prices surged after US-Iran war began in February, which has restricted global oil supplies.
It is the highest rate of inflation since March, but some price rises have slowed: food inflation, at 1.3%, is at its lowest rate for close to five years.
Experts say Wednesday's inflation figure is unlikely to influence the Bank of England to change its key interest rate at its next meeting in September.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in