UK Inflation Bounces Back to 2.9% Amid Energy Price Hikes

UK inflation has increased to 2.9% in July, up from 2.6% in the previous month, according to the Office for National Statistics.

The rise is largely attributed to a sharp increase in household gas and electricity bills following the conflict in Iran, which caused chaos in world energy markets.

However, food prices rose more slowly in July, with inflation in the industry nudging down from 1.7% to 1.3%. Prices for beef and breaded chicken decreased, while pasta, olive oil, and fresh fruit saw price drops.

Despite the slow rise in food prices, experts warn that they are expected to climb towards the end of the year as higher costs for suppliers filter through to shelves and the impact of droughts and heatwaves on crops begins to be felt.