UK Inflation Hits 2.9% in July, Highest Since March

The UK's inflation rate has reached 2.9% in July, marking its highest level since March and surpassing June's increase of 2.8%. This development comes as the British Consumer Price Index (CPI) continues to hover below the 3% threshold for the fourth consecutive month.

According to data released by the Office for National Statistics (ONS), food and non-alcoholic beverages saw a price hike of 1.3% year-on-year in July, which is four tenths less than June's increase. Transportation costs rose by 3.6%, down from 5.7% in the previous month.

The overall set of goods experienced a 2.2% year-on-year price rise, half a percentage point higher than in June. Services recorded a 3.4% increase compared to the 3.6% seen in June. Core inflation, which excludes energy and fresh food from the calculation, remained steady at 2.6%, mirroring the rate observed in June.