UK Inflation Surges to Four-Month High on Soaring Energy Costs

UK inflation accelerated to a four-month high in July, reaching 2.9% year-over-year, according to official data released on Wednesday.

The increase was driven primarily by a jump in household energy bills, with gas prices rising 14.7% from the previous month, the largest annual gain since October 2022.

Core inflation, which excludes food and energy, remained unchanged at 2.6%, defying expectations of a slight easing.

Economists noted that while the energy shock has had a significant impact on prices, there is little sign it is spreading to other parts of the economy.