UK Inflation Surges to 2.9% Amid Energy Price Cap Hike

The UK's annual rate of consumer price inflation increased in July to 2.9% from a 15-month low of 2.6% in June, according to official figures released on Wednesday.

Economists polled by Reuters had widely expected to see a rise in inflation to 2.9%, spurred by an increase in household energy bills after a 13% increase in the Ofgem price cap took effect last month.

The Bank of England predicted a smaller rise to 2.8% in forecasts published at the end of last month, but is now monitoring pass-through effects of energy into broader inflationary pressures.