{
  "id": 1967018,
  "title": "UK Inflation Jumps to 2.9% as Energy Bills Bite",
  "url": "https://urgent.news/2026/08/19/uk-inflation-jumps-to-2-9-as-energy-bills-bite",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-19T16:00:00.000Z",
  "source": {
    "name": "OilPrice",
    "slug": "oilprice",
    "url": "https://oilprice.com/Energy/Energy-General/UK-Inflation-Jumps-to-29-as-Energy-Bills-Bite.html"
  },
  "original_language": "en",
  "account": "Inflation climbed to 2.9% in the 12 months leading up to July, according to official data released by the Office for National Statistics (ONS). This marks a significant increase from the previous reading of 2.6%. The consumer price index inflation, which measures overall price growth, rose to the higher level. Services inflation, a metric closely monitored by Bank of England policymakers, slowed slightly to 3.4%. Core inflation, which excludes food and energy costs, remained steady at 2.6%. Factors contributing to the upward pressure on prices included falling furniture prices and a smaller decrease in clothing prices due to reduced discounts. Raw material and goods prices also slowed down, primarily due to a decline in crude oil and refined petroleum costs. Chancellor John Healey highlighted that the British economy remains resilient despite the impact of the Iran war on home prices. The government has implemented cost-saving measures, such as cutting VAT on electricity bills and capping bus fares, to provide relief to families struggling with rising expenses. However, shadow chancellor Sir Mel Stride accused the Labour government of accelerating price rises, noting that inflation has been above the two percent target for 22 consecutive months. Businesses are facing higher input prices, which are being passed onto consumers, potentially contributing to further price increases. City economists predict that inflation could peak later in 2026 or early 2027, reaching around three percent. The Bank of England has warned that it may raise interest rates to combat persistent inflation caused by volatile energy prices.",
  "summary": "Inflation has leaped up following the reset of the energy price cap, official data has revealed, marking the likely beginning of a long run of increases in price growth. The Office for National Statistics (ONS) put the consumer price index inflation reading at 2.9 per cent for the 12 months to July. The previous inflation reading was 2.6 per cent. Services inflation, a measure closely watched by…",
  "key_points": [
    "UK inflation rises to 2.9% in July, up from 2.6%",
    "Energy bills and raw material costs drive price increases",
    "Chancellor John Healey says economy remains resilient"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}