UK Inflation Hits Four-Month High as Energy Costs Soar

The UK's Consumer Prices Index (CPI) inflation rate has risen to 2.9% in the 12 months to July 2026, according to the Office for National Statistics.

This marks a four-month high and is up from June's 15-month low of 2.6%. The main contributors to the increase were housing and household services, which rose by 4.1% compared to 2.7% in June.

The largest jump was in gas and electricity bills, described as the biggest leap in almost four years by the ONS.

Ben Thompson from Mortgage Advice Bureau noted that an inflation bounce-back was expected after last month's surprise fall, citing climbing fuel prices since the last reading.

The data will influence the Bank of England's next move and impact mortgage deals available. First-time buyers should know that lenders price fixed deals against where they expect rates to go next, not today's rate.