UK inflation hits 4-month high as energy costs surge

According to the Office for National Statistics, the Consumer Prices Index increased from 2.6% in June, with the latest rise largely driven by the sharpest

The UK’s inflation rate climbed to 2.9% in July, marking its highest level in four months as rising energy costs put renewed pressure on household budgets.

According to the Office for National Statistics, the Consumer Prices Index increased from 2.6% in June, with the latest rise largely driven by the sharpest increase in gas prices in almost four years. The acceleration came despite continued easing in food price inflation, which slowed to 1.3%, its lowest rate in nearly five years.

The latest figures show that wages for most workers are still growing faster than prices, offering some relief to households. However, economists warn that prolonged conflict in the Middle East could push energy costs higher and create additional inflationary pressure in the coming months.

Chancellor John Healey said the UK economy remained resilient but acknowledged that the war involving Iran was continuing to affect prices. The opposition Conservatives, meanwhile, criticised the government’s economic management.

The latest inflation reading remains above the Bank of England’s 2% target, highlighting the continued challenge of bringing price growth under control while energy costs remain volatile.