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UK consumer inflation accelerates from a 15-month low as higher household energy bills put renewed pressure on prices
Britain’s annual consumer price inflation rate rose to 2.9 per cent in July from a 15-month low of 2.6 per cent in June, official data showed on Wednesday, as higher household energy costs pushed prices higher.
Economists polled by Reuters had widely expected inflation to rise to 2.9 per cent, following a 13 per cent increase in the household energy price cap set by regulator Ofgem that took effect last month.
The July reading marks a renewed acceleration in inflation after consumer price growth eased to 2.6 per cent in June.
The increase in energy bills is expected to put additional pressure on household budgets, potentially affecting consumer spending and the broader economic outlook.
The inflation data will also be closely watched by the Bank of England as it assesses the path for interest rates. A sustained rise in consumer prices could make it more difficult for policymakers to ease monetary policy rapidly, particularly if underlying price pressures remain elevated.
