Energy bills push UK inflation up to 2.9%

Britain's annual inflation rate reached 2.9 percent in July, a figure analysts had anticipated, according to official data released on Wednesday. The Consumer Prices Index (CPI) saw an increase from 2.6 percent in June, with the rise attributed to a 13 percent increase in the energy price cap implemented last month, largely due to the ongoing conflict between the United States and Iran. The Office for National Statistics (ONS) described this as "the largest rise in gas prices for almost four years."

New Prime Minister Andy Burnham has committed to addressing cost-of-living pressures, introducing initiatives such as a reduction in household electricity tax and a cap on bus fares. In response to the latest inflation figures, Finance Minister John Healey remarked, "Iran war inflation continues to impact prices here at home, but Britain's economy is resilient." He added, "There is more to do to restore hope and build a stronger economy where prosperity is shared more fairly across Britain."

Meanwhile, the Bank of England maintained its benchmark interest rate at 3.75 percent last month, despite inflation remaining significantly above its 2 percent target.