UK Inflation Hits Four-Month High as Energy Bills Soar

UK inflation rose to its highest level in four months, driven by higher energy bills. The Office for National Statistics (ONS) reported that UK inflation hit 2.9% in the year to July, up from 2.5% in June.

The increase was largely due to a surge in gas prices, which rose at their sharpest pace in almost four years. This led to an increase in the cap on household energy bills in July by 13%, adding £221 a year to the typical bill.

Experts say that while inflation remains above the Bank of England's target rate of 2%, it is unlikely to influence interest rates at the next meeting in September.