UK inflation rose to 2.9 per cent in the year to July, up from 2.6 per cent the previous month, the Office for National Statistics said on Wednesday, after a 13 per cent increase in the energy price cap pushed up household bills.
The rise was in line with analysts’ expectations and took the consumer prices index (CPI) to its highest rate since March, according to figures published by the ONS. It follows a fall in inflation to 2.6 per cent in June.
The Ofgem price cap rose to £1,862 in July. It was the first time the cap had taken into account the rise in global oil and gas prices caused by the war with Iran, which is now close to entering its seventh month.
Mike Hardie, deputy director for prices at the ONS, said: “Inflation rose in July, driven by a sharp increase in gas prices following this month’s change to the energy price cap. This was the largest rise in gas prices for almost four years.
“Other upward pressures included furniture prices falling by less than usual for this time of year, and also a smaller fall for clothing prices due to reduced discounting.”
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