UK Inflation Hits 2.9% as Gas Prices Surge

The UK's inflation rate rose to 2.9% in July, up from 2.6% in June, according to data released by the Office for National Statistics (ONS). This increase was driven by a sharp rise in gas prices following the change to the energy price cap, with prices rising by their largest amount in almost four years.

Furniture and household services made the largest upward contributions to the monthly change in both Consumer Prices Index (CPI) and CPIH annual rates. Within this category, furniture and furnishings saw a 0.3% rise, while garden furniture prices fell by 12%. Carpets and other floorcoverings, however, experienced a 5.3% price increase.

The Producer Price Inflation (PPI) rate for furniture output prices rose 2.5% in July compared to the same month last year, while input prices increased 4.2%. Crude oil provided the largest contribution to the fall in the annual inflation rate for input prices, with prices falling by 18% on the month.