UK Inflation Hits Four-Month High as Gas Prices Soar

UK inflation rose to a four-month high of 2.9% in July, driven by a 14.7% increase in gas prices.

The rise was attributed to Ofgem's 13% energy price cap increase, which boosted household energy bills by £221 to an average of £1,862 per year.

Core inflation, excluding volatile energy and food costs, remained unchanged at 2.6%, while transport costs increased by 3.6% in the 12 months to July.

British Finance Minister Jeremy Hunt attributed the inflation rise to the Iran-related war, saying it continues to affect prices in the UK but that the economy remains resilient.