UK Inflation Reaches Four-Month High on Energy Price Surge

UK inflation reached a four-month high in July, rising to 2.9% from 2.6% in June, driven by a 13% increase in household energy bills.

The Office for National Statistics (ONS) reported the annual consumer price inflation rate matched forecasts, with economists polled by Reuters expecting the rise.

Energy prices remain a major concern as the war in Iran continues, with no end in sight. The Bank of England predicted a smaller rise to 2.8% and sees inflation peaking at 3.2% later this year.

The data may reassure the Bank of England, which was burned by high price rises in 2022 after Russia's invasion of Ukraine.