UK Inflation Soars to 2.9% as Iran War Drives Up Energy Bills

UK inflation rose to 2.9% in July, driven by rising energy prices after the Iran war triggered a global shockwave. The Office for National Statistics reported that this is the first rise in the annual rate of inflation since March.

The increase was largely due to the 13% jump in the cap on energy bills at the start of July, leading to higher gas and electricity prices. This marks the sharpest summer increase in energy bills in four years.

The Bank of England is considering raising interest rates as early as next month in response to fears over stubbornly high inflation becoming entrenched in the economy.