Gas Prices Fuel UK Inflation Surge to 2.9%

UK inflation rose to 2.9% in July, driven by higher gas prices, according to data released by the Office for National Statistics.

The increase from June's 2.6% rate was as expected and marked a significant jump, with gas prices rising 14.7% in July, compared to a 7.2% fall a year earlier.

The largest upward contributions to the monthly change came from housing and household services, while transport made the largest downward contribution, partially offsetting its impact.

Within housing and household services, gas prices rose due to higher standard variable tariffs following Ofgem's change to the energy price cap, which added £221 to an average annual bill for a dual fuel household paying by direct debit.