UK Inflation Surges to 2.9% Amid Middle East Energy Crisis

The UK's inflation rate accelerated to 2.9% in July, driven by a shock from the Middle East energy market.

According to data released on Thursday, the Consumer Prices Index (CPI) increased at its fastest pace since June 2018, exceeding economists' forecasts of 2.6%. The rise was largely due to higher fuel prices following a surge in global crude oil costs.

The energy shock has had a significant impact on households, with the average price for a gallon of unleaded petrol increasing by 1.3 pence per litre in July.