UK Inflation Hits Four-Month High on Energy Price Hikes

The UK's annual inflation rate rose to a four-month high in July, driven primarily by higher household energy bills. The consumer price index (CPI) increased to 2.9% in the 12 months to July, up from 2.6% in June.

The largest rise in gas prices for almost four years was largely responsible for the uptick, following a 13% hike in the price cap on household energy bills that took effect last month. This increase is directly linked to the ongoing US-Iran war.

New Prime Minister Andy Burnham has pledged to ease cost-of-living pressures by unveiling measures such as a tax cut on household electricity prices and a cap on bus fares.