UK Inflation Hits Four-Month High on Energy Bill Hikes

UK inflation has increased to its highest level in four months, reaching 2.9% year-on-year in July.

This marks a significant jump from the 15-month low of 2.6% recorded in June and is largely attributed to the 13% rise in energy bills.

The Bank of England had forecasted an increase to 2.8%, while services inflation, which measures domestic pressures, fell to 3.4% from 3.6%.

Cheap motor fuel partially offset the price cap hike on household energy bills, but overall inflation has reached its highest level since March.