UK inflation hits four-month high of 2.9% as energy bills soar
A 13% jump in the energy price cap drove UK inflation to 2.9% in July, the sharpest gas price rise in almost four years.
UK inflation surged in July, reaching its highest level since March, as energy bills rose, according to figures released by the Office for National Statistics on August 19. Consumer prices increased by 2.9 percent year-on-year, up from June's 15-month low of 2.6 percent. This surge was largely driven by a 13 percent rise in the price cap that determines household energy costs, though it was partially offset by lower fuel prices.
Services inflation, which reflects domestic pressures, dropped slightly to 3.4 percent, while core inflation remained unchanged at 2.6 percent. Despite the increase, the pound gained 0.1 percent against the US dollar, and bond yields were forecast to remain slightly lower. UK Prime Minister Andy Burnham has made the cost of living a priority, proposing various measures to alleviate pressure on households.
However, the ongoing conflict in the Middle East continues to fuel inflation, making it challenging for the Bank of England to lower interest rates and potentially necessitating rate hikes.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- UK inflation climbs to four-month high as energy bills rise straitstimes.com
