UK inflation climbed to 2.9% in July, up from 2.6% in June, in what the Guardian reports may be the first of several increases, complicating efforts to shield consumers from renewed cost of living pressure this autumn.
Key facts
- UK inflation rose to 2.9% in July, up from 2.6% in June.
- Rising energy bills were the main driver of the increase, according to the Guardian.
- An increase in Ofgem's quarterly price cap came into force.
- The Guardian reports July's rise is likely to be the first of several.
- The Guardian reports the prime minister's plan to shield households risks being overwhelmed by wider price rises.
UK inflation rose to 2.9% in July, up from 2.6% in June, according to the Guardian. The outlet reports the increase underlines the scale of the cost of living challenge facing Andy Burnham in shielding consumers from a fresh squeeze this autumn.
The Guardian reports that July’s increase is likely to be the first of several, suggesting price pressures on households may build in the months ahead rather than ease.
Rising energy bills were the main driver of the jump in inflation, according to the report, after an increase in Ofgem’s quarterly price cap came into force, pushing up the cost of household energy.
The Guardian reports that the prime minister’s plan to shield households from further pressure risks being overwhelmed by wider price rises. The outlet does not detail the precise relationship between that plan and the challenge it attributes to Burnham.
The figures place the cost of living back at the centre of the political and economic debate, with attention on how policymakers respond to a renewed squeeze on household budgets.
Why it matters
Inflation directly affects the prices households pay for essentials such as energy, and a rise signals renewed pressure on family budgets. With the increase driven by energy bills tied to Ofgem's price cap, the Guardian suggests targeted support measures may struggle to keep pace with broader price rises.
Frequently asked questions
How much did UK inflation rise in July?
According to the Guardian, UK inflation rose to 2.9% in July, up from 2.6% in June.
What caused the increase in inflation?
Rising energy bills were the main driver, following an increase in Ofgem's quarterly price cap that came into force.
Is inflation expected to keep rising?
The Guardian reports that July's increase is likely to be the first of several.