UK Inflation Hits 2.9% as Gas Prices Soar

The UK's inflation rate rose to 2.9% in July, up from 2.6% in June, according to the Office for National Statistics (ONS). This marks the first increase since March this year. The Consumer Prices Index (CPI) also saw a monthly rise of 0.3%, compared to a 0.1% increase in July last year.

Clothing and footwear prices rebounded in July, rising by 0.5% after a 0.5% fall in June. This marks the smallest July fall since 2020. The ONS attributed this to earlier discounting that lifted clothing store volumes, supported by sales promotions and warm weather.

However, gas prices jumped by 14.7% in July, with transport costs rising by 3.6%. Motor fuel prices also rose by 15.5%, but at a slower pace than in June. The average diesel price reached 167.6 pence per litre, while the average petrol price was 152.2 pence per litre.