UK Inflation Hits 2.9% Amid Energy Bill Hike

UK inflation rose to its highest rate since March in July, driven by an increase in household energy bills. According to data from the Office for National Statistics, annual consumer price inflation reached 2.9% in July, up from a 15-month low of 2.6% in June.

The price cap set by regulator Ofgem led to a 13% increase in energy bills, contributing to the higher inflation rate. Core inflation, which excludes the impact of energy and food prices, came in at 2.6%, slightly higher than expected.

Finance Minister John Healey said that despite Iran war inflation continuing to affect prices, Britain's economy is resilient. The data was broadly as expected, with economists polled by Reuters predicting a rise in inflation to 2.9%.