UK Inflation Surges on Higher Energy Costs

UK inflation rose to 2.9% in July, driven by higher household energy costs and a jump in gas prices.

The Consumer Prices Index (CPI) increased from 2.6% in June to 2.9% in the 12 months to July, according to the Office for National Statistics.

Gas prices surged 14.7% during July, while electricity prices rose 3.6%, with both increases contributing to higher household bills.

The Bank of England has warned that inflation is likely to rise further in the coming months as global energy costs feed through to households and businesses.

Businesses are feeling the heat from inflation, with 66% identifying it as a concern during the second quarter, according to the British Chambers of Commerce.