July Inflation Rises to 2.9%
According to the Office for National Statistics (ONS), inflation rose to 2.9% in July, up from 2.6% the previous month.
The Consumer Prices Index including owner occupiers' housing costs (CPIH) increased by 3.1% over the past year, marking the first rise since March.
Housing and household services contributed the most to the monthly change in both CPIH and CPI annual rates, while transport made a downward contribution that was partially offset.
KPMG UK's Yael Selfin said that domestic price pressures are moderating and inflation is broadly in line with the Bank of England's latest projections.
Selfin expects interest rates to remain unchanged for the remainder of the year, but notes that higher energy prices will continue to put upward pressure on headline inflation.