Jump in energy bills drives UK inflation to highest rate for four months
The cost of things is now rising at a faster pace compared with last month.
UK inflation surged to 2.9% in the 12 months leading up to July, according to the most recent data from the Office for National Statistics (ONS). This marked the highest inflation rate since March, when it stood at 3.3%. The ONS attributed the rise to energy costs, specifically the 13% increase in the price cap on household gas and electricity bills announced by regulator Ofgem. The jump in energy prices has added £221 to the average household's annual bill.
Prices of furniture also contributed to the upward pressure on inflation, with ONS prices director Mike Hardie noting that furniture costs fell by less than usual for this time of year. Additionally, clothing was not being discounted as extensively as before. Chancellor John Healey acknowledged that the ongoing conflict in Iran was continuing to impact prices in the UK, but maintained that Britain's economy remained resilient.
He stated that the government had taken steps to provide relief, including cutting VAT on electricity bills and capping bus fares at £2.
Written by urgent.news from BBC Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
