UK Inflation Hits Highest Rate Since March Amid Energy Price Spike
UK inflation has jumped to its highest rate since March, according to official figures released by the Office for National Statistics (ONS). The Consumer Prices Index (CPI) rose to 2.9% in July, up from a 15-month low of 2.6% in June.
The increase is largely due to a 13% hike in Ofgem's energy price cap, which raised the average gas and electricity bill by £221 to £1,862 per year. This was the largest rise in gas prices for almost four years, according to Mike Hardie, deputy director for prices at the ONS.
The sharp increase in energy costs was partly offset by lower crude oil costs last month, but prices have since rocketed back up above $90 a barrel as the Iran conflict continues. The Strait of Hormuz shipping route remains closed, impacting global oil and gas supplies.