UK Inflation Hits 2.9% as Energy Price Cap Bites

UK inflation rose to 2.9% in July, according to the latest Office for National Statistics (ONS) figures.

The increase was expected following June's figure of 2.6%, which represented a 15-month low.

The jump is largely attributed to an increase in the energy price cap by 13% in July, citing higher gas and fuel prices due to the conflict in the Middle East.

This change has resulted in the average annual gas and electricity bill rising by £221 to £1,862, reports The Times.

UK Chancellor John Healey responded to the rise, stating that the British economy remains 'resilient', but acknowledged the impact of the Iran war on prices at home.