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UK CPI inflation rises to 2.9% as energy price cap resets
Services inflation eased to 3.4%, while core inflation held at 2.6%, according to UK data.
UK inflation jumped after the reset of the UK energy price cap, with official data showing consumer prices rose to 2.9% for the 12 months to July, up from 2.6% in the prior reading, OilPrice reports.
The report says services inflation, watched by Bank of England policymakers for signals on wage pressure, eased to 3.4%, while core inflation, which strips out food and energy, was 2.6%.
OilPrice adds that the ONS pointed to upward pressures including furniture prices falling by less than usual for the time of year and a smaller fall in clothing prices due to reduced discounting.
Chancellor John Healey said Britain’s economy is resilient despite the Iran war affecting prices, while the ONS data is seen as suggesting price growth could stay elevated for longer.
Shadow chancellor Sir Mel Stride argued price rises are accelerating again and said inflation has been above the 2% target for 22 months in a row.