UK inflation rises to 2.9%
Summary
Inflation in the UK increased to 2.9% in the year up to July, mainly due to higher gas prices and an increase in the energy price cap. Energy costs went up after the regulator raised the limit on household gas and electricity bills, making typical annual bills £221 more expensive.Key Facts
- UK inflation rose to 2.9% in the 12 months ending in July 2026.
- The increase was mainly caused by higher gas prices and a 13% rise in the energy price cap.
- The energy price cap rise happened on 1 July, increasing typical household bills by £221 annually.
- Inflation of 2.9% is the highest since March 2026, when it was 3.3%.
- Rise in furniture prices and less discounting on clothing also contributed to inflation growth.
- Chancellor John Healey said the war in Iran continues to affect prices in the UK economy.
- The government reduced VAT on electricity bills and capped bus fares at £2 to ease pressure.
- Officials say the UK economy is resilient but challenges remain ahead.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
