UK inflation accelerated to 2.9% in July, up from a 15-month low of 2.6% in June, as higher energy bills tied to the Iran war renewed the cost of living squeeze on households.
Key facts
- UK inflation rose to 2.9% in July, according to the Office for National Statistics.
- The rate climbed from a 15-month low of 2.6% in June.
- Rising gas and electricity prices drove the increase.
- It was the first rise in the annual CPI rate since March.
- The chancellor said 'there is more to do to restore hope'.
UK inflation rose to 2.9% in July, its highest rate for four months, as a jump in energy bills renewed pressure on household budgets, official figures show.
The Office for National Statistics said the annual rate measured by the consumer prices index climbed from a 15-month low of 2.6% in June, according to the Guardian. The increase matched forecasts from City economists.
The rise was driven by the increasing price of gas and electricity, the ONS said. The Guardian reported that the impact of the Iran war on energy prices was behind the renewed cost of living squeeze for British households.
It was the first rise in the annual CPI rate since March, marking a reversal after inflation had fallen to its lowest level in more than a year the previous month.
The cost of goods and services is now rising at a faster pace than it was the month before, according to the BBC. The acceleration adds fresh pressure on households already grappling with living costs.
Responding to the figures, the chancellor said ‘there is more to do to restore hope’, according to the Guardian, acknowledging the continued strain on households.
Why it matters
Higher inflation means the cost of everyday essentials is rising faster, squeezing household budgets after a period of easing prices. Because the increase is driven by energy costs linked to the Iran war, it highlights how international events can quickly feed through to what British families pay at home.
Frequently asked questions
What is the current UK inflation rate?
UK inflation rose to 2.9% in July, up from 2.6% in June, according to the Office for National Statistics.
Why did UK inflation rise?
The increase was driven by rising gas and electricity prices, with the Guardian reporting that the impact of the Iran war on energy prices triggered the rise.
When did inflation last rise before this?
According to the Guardian, this was the first rise in the annual CPI rate since March.