UK Inflation Hits 2.9% as Energy Bills Soar

British inflation rose to its highest rate since March as household energy bills increased by 13% after Ofgem's price cap hike.

Annual consumer price inflation hit 2.9% in July, surpassing a 15-month low of 2.6% in June, according to the Office for National Statistics.

Economists had widely predicted this rise, although the Bank of England forecasted a smaller increase to 2.8%.

The core inflation rate, excluding energy and food prices, came in at 2.6%, slightly higher than expected.