UK Inflation Hits Four-Month High as Energy Bills Soar

UK inflation has hit its highest level in four months, rising to 2.9% in July, according to data published by the Office for National Statistics on August 19.

The increase is largely due to a 13% hike in energy bills following an Ofgem price cap raise at the start of the month. Energy prices surged by 14.7%, the steepest jump since October 2022, according to the data.

Vicky Pryce, Chief Economic Adviser at the Centre for Economics and Business Research, warned that continued energy price shocks will strain households and businesses going forward due to geopolitical instability in global markets.