UK Inflation Rises to 2.9% Amid Energy Price Cap Hike
UK inflation rose to 2.9% in the 12 months to July, according to the Office for National Statistics (ONS). This represents a slight increase from the previous month's rate of 2.6%. The figures were announced on August 19.
The rise in inflation was driven by a sharp increase in gas prices following the change to the energy price cap last month. Ofgem's energy price cap increased by 13% in July, raising the average gas and electricity bill by £221 to £1,862 a year.
Deputy director for prices at the ONS, Mike Hardie, said that inflation rose in July due to 'a sharp increase in gas prices following this month's change to the energy price cap.' He added that other upward pressures included furniture and clothing prices falling by less than usual for this time of year.
Chancellor John Healey responded to the figures, saying: 'Iran war inflation continues to impact prices here at home, but Britain’s economy is resilient. There is more to do to restore hope and build a stronger economy where prosperity is shared more fairly across Britain.'