UK Inflation Hits 2.9% as Iran War Fuelled Gas Price Hike Bites

UK inflation has risen to its highest rate since March, reaching 2.9% in July, according to official figures from the Office for National Statistics (ONS). The increase is attributed to a sharp rise in gas prices following a 13% hike in Ofgem's energy price cap last month.

The average annual gas and electricity bill has increased by £221, making it £1,862. This is the largest rise in gas prices for almost four years, with other upward pressures coming from furniture prices falling less than usual and smaller discounts on clothing.

In response to the figures, Chancellor John Healey stated that 'Iran war inflation continues to impact prices here at home, but Britain's economy is resilient.'