UK inflation rises to 2.9% in July as higher household energy bills push consumer prices to their highest rate since March.
UK inflation rose in July as higher household energy bills pushed the rate to its highest level since March.
Annual consumer price inflation increased to 2.9% in July from 2.6% in June, according to figures released by the Office for National Statistics on Wednesday.
The rise followed a 13% increase in the household energy price cap set by regulator Ofgem.
Economists polled by Reuters had widely expected inflation to rise to 2.9%. The Bank of England had forecast a smaller increase to 2.8% in projections published at the end of July.
Core inflation, which excludes energy and food prices, was slightly higher than expected at 2.6%. The median Reuters poll had forecast 2.5%.
“Iran war inflation continues to impact prices here at home, but Britain’s economy is resilient,” Finance Minister John Healey said in response to the figures.
Sterling and British government bond futures showed little immediate reaction to the data, which was broadly in line with expectations.