UK Inflation Jumps to 2.9% as Gas Prices Surge

UK inflation rose to 2.9% in July, as expected, driven by higher gas prices, according to data released on Wednesday by the Office for National Statistics.

The increase was largely due to a sharp rise in standard variable tariffs after Ofgem changed the energy price cap, which equated to an annual bill of £1,862 for an average household paying by direct debit for dual fuel.

Core inflation, excluding energy, food, alcohol, and tobacco, remained unchanged at 2.6% in the 12 months to July, missing expectations of a small decline to 2.5%