UK Inflation Soars to 2.9% Amid Energy Price Hike

UK inflation has surged to its highest rate since March due to surging energy prices following the Iran war. The Consumer Prices Index (CPI) rose to 2.9% in July, up from 15-month low of 2.6% in June.

The Office for National Statistics (ONS) reported that the average gas and electricity bill increased by £221 to £1,862 a year due to Ofgem's 13% hike in energy price cap last month.

Chancellor John Healey attributed the rising prices to the ongoing Iran war, stating it continues to impact prices at home. He added that the government has taken measures to alleviate the burden on citizens, including cutting VAT on electricity bills and capping bus fares at £2.

Economists predict that inflation may continue to rise as energy costs are expected to increase further over the winter months due to the conflict and hot weather damaging crops and putting pressure on food prices.