UK Inflation Surges to 2.9% on Energy Bill Hike

UK inflation rose to 2.9% year-on-year in July, up from June's 15-month low of 2.6%, according to official figures released on Wednesday.

The increase was largely expected by economists polled by Reuters, who predicted a rise to 2.9% driven by higher household energy bills following a 13% hike in the price cap set by regulator Ofgem last month.

The Bank of England had forecast a smaller increase to 2.8% in its recent forecasts published at the end of July.