UK Inflation Hits Highest Level Since March Amid Gas Price Surge
UK inflation rose to 2.9% in July, its highest level since March, due to a sharp increase in gas prices following Ofgem's energy price cap hike.
The Office for National Statistics (ONS) reported that the Consumer Prices Index (CPI) inflation rate increased from 2.6% in June, driven by a 13% rise in the average gas and electricity bill, which now stands at £1,862 per year.
Mike Hardie, deputy director for prices at the ONS, attributed the jump to 'a sharp increase in gas prices following this month's change to the energy price cap', which was the largest rise in gas prices for almost four years.
Chancellor John Healey acknowledged the impact of the Iran war on inflation but expressed confidence in Britain's resilient economy. He noted that the government has taken steps to help households, including cutting VAT on electricity bills and capping bus fares at £2.