UK Inflation Hits 4-Month High as Energy Prices Soar

Prime Minister Andy Burnham has pledged to help Britons through 'really hard' times as cost pressures mount after inflation surged to a four-month high. The Consumer Prices Index (CPI) rose to 2.9% in July, up from 2.6% in June and the highest level since March.

The steep increase is partly due to the 'effect of the conflict in the Middle East', according to Mr. Burnham. Ofgem's energy price cap has also risen by 13%, increasing the average gas and electricity bill by £221 to £1,862 a year.

Experts at Cornwall Insight are predicting further misery for households as they forecast a 4% rise in the next quarterly cap for October to December. This would bring the total energy price increase to £245 since last month's hike.