UK Inflation Surges Past Target as Gas Prices Soar

UK inflation rose to 2.9% in July, surpassing the Bank of England's 2% target for the first time since March.

The increase was primarily driven by a sharp hike in gas prices, following a 13% rise in Ofgem's energy price cap.

While food and drink annual inflation fell to 1.3% in July, experts warn that heatwaves, droughts, and the ongoing war involving Iran could push grocery prices back up.

Economists project inflation could peak at around 3.5% by the end of the year, although this is unlikely to prompt a rate hike from the Bank of England.