UK Inflation Hits 2.9% as Energy Costs Soar

UK inflation accelerated to 2.9 per cent in July as household energy costs continued to push up the cost of living, raising concerns over pressure on consumers and retailers.

The Consumer Prices Index climbed from 2.6 per cent in June, marking the first rise in the annual rate since March, according to the Office for National Statistics.

Housing and household services contributed most to the increase, with gas prices jumping 14.7 per cent during July following changes to the Ofgem energy price cap. Electricity prices also rose 3.6 per cent.

However, underlying inflation remained stable. Core CPI, which excludes energy, food, alcohol and tobacco, held at 2.6 per cent, while services inflation eased from 3.6 per cent to 3.4 per cent.