UK Inflation Hits 2.9% on Soaring Energy Bills

UK inflation rose to its highest rate since March as household energy bills increased by 13% after a price cap revision, according to data released today. The Office for National Statistics reported that annual consumer price inflation reached 2.9% in July from a 15-month low of 2.6% in June.

Economists had widely predicted the rise in inflation to 2.9%, although the Bank of England had forecasted a smaller increase to 2.8%. Core inflation, which excludes energy and food prices, came in at 2.6%, slightly higher than the median prediction of 2.5%.

Finance Minister John Healey attributed the inflation surge to ongoing global economic pressures, including the 'Iran war' inflation, but emphasized Britain's economy remains resilient.