UK Inflation Hits Four-Month High as Energy Costs Surge

UK inflation has risen to its highest level in four months, driven by surging household energy costs. According to data from the Office for National Statistics (ONS), consumer prices rose 2.9% in July, up from 2.6% in June.

The increase was largely anticipated due to Ofgem's revised household energy price cap, which pushed utility bills higher in July. The regulatory adjustment directly impacted millions of British households still recovering from the cost-of-living crisis.

While core inflation remained relatively stable, the headline figure's upward trajectory has forced the Bank of England's Monetary Policy Committee (MPC) to reassess its easing schedule. Markets had previously priced in a steady sequence of rate cuts through the autumn, but the July data introduces significant friction into those projections.