UK inflation rises to 2.9% as Iran war fuels living costs squeeze
The Office for National Statistics said the rise was driven by higher gas prices after Ofgem’s 13% energy cap increase, lifting average bills by £221.
- The Office for National Statistics reported that Consumer Prices Index inflation rose to 2.9% in July, climbing from a 15-month low of 2.6% in June as energy costs surged.
- This increase follows a 13% hike in Ofgem's energy price cap last month, which raised the average annual gas and electricity bill by £221 to £1,862.
- Mike Hardie, deputy director for prices at the ONS, attributed the July rise to gas prices, which saw their largest jump in four years, while crude oil prices climbed above 90 US dollars amid the Iran war.
- Chancellor John Healey stated the economy remains resilient, noting the Government has cut VAT on electricity bills and capped bus fares at £2 to provide relief to households.
- SNP Economy spokesperson Kirsty Blackman warned this inflation spike could lead to soaring costs this autumn, urging the Government to act before family finances in Brexit Britain reach a breaking point.
81 Articles
81 Articles
Energy Bills Rocket by £221 as UK Inflation Hits 2.9% in Fresh Blow for Millions of Households
UK inflation jumped to 2.9 per cent in July, overshooting the Bank of England's 2 per cent target, as a £221 surge in typical annual energy bills heaped fresh pressure on household finances, official figures showed on Wednesday. The latest reading from the Office for National Statistics followed a 2.6 per cent rate in June and came weeks after regulator Ofgem lifted its energy price cap by 13 per cent from 1 July, taking the average dual-fuel bi…
UK inflation rises to 2.9% as higher energy bills hit households
UK inflation rose to 2.9% in July as higher gas and electricity prices increased household costs, ending three months of falling annual rates and keeping inflation above the Bank of England’s 2% target. The Consumer Prices Index increased from 2.6% in June, according to the Office for National Statistics. Prices rose by 0.3% during July, compared with an increase of 0.1% in July 2025. CPIH, which includes the housing costs faced by owner-occupie…
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 si…
Above all, housing costs and household services are driving prices, but the core rate of British inflation is a surprise.
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