UK Inflation Hits Four-Month High Amid Energy Price Hike

The UK's inflation rate rose to 2.9% in July, its highest level in four months, driven by a 14.7% increase in gas prices over the same period last year.

The Office for National Statistics attributed the rise in gas prices to Ofgem's 13% energy price cap hike at the start of July, which led to an average increase of £221 on household energy bills, bringing them to £1,862 per year.

British Finance Minister Jeremy Hunt said inflation stemming from the Iran-related war continues to affect prices in the UK, but the British economy remains resilient.

The Bank of England is considering whether to raise interest rates as early as next month, with some economists surveyed by Reuters expecting inflation to rise further.