UK Inflation Jumps to 2.9% as Energy Bills Bite

Inflation has leaped up following the reset of the energy price cap, official data has revealed, marking the likely beginning of a long run of increases in price growth. The Office for National Statistics ONS put the consumer price index inflation reading at 2.9 per cent for the 12 months to July. The previous inflation reading was 2.6 per cent. Services inflation, a measure closely watched by Bank of England policymakers given it provides signals on wage pressures, eased to 3.4 per cent while core inflation, which strips out food and energy, was 2.6 per cent. "Upward pressures included furniture prices falling by less than usual for this time of year, and also a smaller fall for clothing prices due to reduced discounting," Mike Hardie, deputy director for prices at the ONS, said.