Economy & Trade
UK inflation rises to 2.9% as energy bills climb
UK inflation rose to 2.9% in July from 2.6% in June as household energy bills increased, the Office for National Statistics said Wednesday.
The Consumer Prices Index figure covered the 12 months to July. The rise followed a 13% increase in the cap on household energy bills that took effect in July, and the ONS called the gas-price increase the largest for almost four years.
Prime Minister Andy Burnham has pledged measures to ease cost-of-living pressure, including a tax cut on household electricity prices and a cap on bus fares.
Finance minister John Healey said “Iran war inflation continues to impact prices here at home” and said there was more to do to build a stronger economy.
The Bank of England held its benchmark interest rate at 3.75% in July despite inflation remaining above its 2% target. Jonathan Raymond, investment manager at Quilter Cheviot, said pressure was likely to remain on prices for at least the rest of the year because conditions around the Strait of Hormuz remained far from normal.
Update
A 13% rise in the household energy price cap took effect in July.
The Office for National Statistics called the gas-price increase the largest for almost four years.
Prime Minister Andy Burnham has pledged measures including a tax cut on household electricity prices and a cap on bus fares.
Finance minister John Healey linked continuing price pressure to what he called Iran war inflation.
The Bank of England held its benchmark interest rate at 3.75% in July despite inflation remaining above its 2% target.
Jonathan Raymond of Quilter Cheviot said pressure was likely to remain on prices for at least the rest of the year.
Source note: AFP news report published on 19 August 2026 at 06:39:04 UTC.
Update
The Office for National Statistics said the Consumer Prices Index rose 2.9% in the 12 months to July.
The July rate was up from 2.6% in June.
Higher energy bills drove the increase.
Source note: AFP news report published on 19 August 2026 at 06:13:32 UTC.
Uncertainty notes
Future inflation and price-pressure forecasts remain projections.
The exact mechanism by which the US-Iran war affected UK household energy bills was not detailed.
Source
AFP news report published on .