Inflation Hits 2.9% as Energy Price Cap Bites

UK inflation has hit 2.9% in July, an increase from 2.6% in June, according to the Office for National Statistics (ONS). This marks the first rise in the annual rate of inflation since March.

The increase was mainly driven by a sharp hike in gas prices following Ofgem's energy price cap change.

Neil Kadagathur, CEO at Creditspring, warned that this could mark the beginning of renewed pressure on household finances, with higher fuel costs risking offsetting progress made in underlying inflation rates.