UK Inflation Hits 2.9% as Energy Costs Bite Hard

UK inflation rose to 2.9% in July, putting pressure on both businesses and consumers as energy costs continued to climb.

The increase was driven by higher household energy costs, following a 13% rise in the Ofgem price cap from 1 July.

This change added around £221 a year to the typical household energy bill, which is likely to have an impact on already strained consumer finances.

For businesses, the renewed inflationary pressure may also be cause for concern, as higher energy costs can eat into profit margins and increase operational expenses.