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UK inflation rises to 2.9% on higher energy bills
The jump reflects a 13% lift in the household energy price cap that adds £221 a year to typical bills, lifting inflation pressure beyond energy into categories like furniture and clothing.
UK inflation climbed to 2.9% in the 12 months to July, driven by higher household energy costs, according to UK figures cited by BBC Business.
The outlet said energy bills rose after Ofgem increased the price cap on gas and electricity on 1 July by 13%, which adds £221 a year to the typical household bill, with the ONS linking the move to the largest rise in gas prices for almost four years.
BBC Business reported that the July inflation rate was the highest since March, when it was 3.3%, and that furniture prices fell by less than usual while clothing discounts were smaller, adding upward pressure.
KPMG’s chief economist Yael Selfin said the latest data marks the start of a gradual rise in inflation, with energy related costs expected to push inflation toward about 3.5% in coming months, while Chancellor John Healey pointed to measures including VAT cuts on electricity bills and a bus fares cap at £2.