UK Inflation Hits 2.9% as Middle East War Continues

UK inflation rose to 2.9% in the 12 months to July 2026, up from 2.6% in June, as the ongoing war in the Middle East continues to put pressure on household bills.

The latest Consumer Price Index (CPI) figures show consumer price inflation increased by 0.3%, with core inflation remaining unchanged at 2.6%.

Schroders head of global economics David Rees believes manufactured goods prices are likely to rise in the months ahead, while drought and a potential Super El Niño could significantly lift food inflation in 2027.

Jonathan Raymond from Quilter Cheviot anticipated a renewed spike in inflation and warns that pressure is likely to continue for the rest of the year, but expects it to moderate as government initiatives begin to take effect on the headline number.