UK Inflation Hits 2.9% Amid Energy Price Surge
The UK's inflation rate increased to 2.9% in July, according to data from the Office for National Statistics released on August 19, 2026. This marks a rise from the 2.6% recorded in June and matches analyst forecasts.
The main contributor to this uptick was the increase in energy costs, with household gas prices surging by 13% in the previous month. Jonathan Raymond of Quilter Cheviot noted that the ongoing Middle East conflict has sustained price pressures for the remainder of the year at minimum.
Sarah Coles from AJ Bell explained that service sectors tend to be labor-intensive and rely heavily on minimum-wage staff, so increases in the minimum wage drive up costs. This situation has been compounded by higher employer National Insurance contributions, prompting service providers to pass on some of these expenses.