UK Inflation Rises to 2.9% Amid Iran War-Driven Energy Price Shock

UK inflation has risen to 2.9% as the Iran war drives up energy prices and puts pressure on British households.

The Office for National Statistics reported that the consumer prices index measure of inflation increased from a 15-month low of 2.6% in June, driven by rising gas and electricity costs.

Matching City economists' forecasts, this marks the first rise in the annual rate since March.

Economists attribute the acceleration in price rises to the impact of the Iran war on global energy markets, which triggered a 13% increase in the cap on energy bills at the start of July, leading to higher gas and electricity bills for consumers.