Surging energy prices push inflation up to highest level since March
· World · The Independent, Bloomberg, CNBC
Consumer Prices Index inflation in the United Kingdom climbed to 2.9% in July, up from 2.6% in June, according to the Office for National Statistics. The increase follows a 13% rise in Ofgem’s energy price cap last month, which lifted the average annual gas and electricity bill by £221 to £1,862. Mike Hardie, deputy director for prices at the ONS, said the July rise was driven by a sharp jump in gas prices following the cap change, the largest increase in four years. Furniture prices fell less than usual and clothing prices dropped less due to reduced discounting, adding to upward pressure. The data reflects the impact of the Iran–Israel war on global energy markets and household costs.
Why it matters
The higher CPI means UK households face greater living costs, especially through rising energy bills. It may influence monetary policy decisions that can affect inflation expectations and the value of the pound.
Read the original report — The Independent
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