UK inflation hits four-month high as energy price shock squeezes households
UK inflation rose to 2.9% in July 2026, its highest level in four months, as soaring gas prices and a 13% increase in the Ofgem energy price cap pushed household costs higher. The ongoing Middle East conflict and shipping disruptions through the Strait of Hormuz also added pressure to global oil and gas prices.
Food inflation slowed, but economists warn UK inflation could reach 3.5% later this year, with a worst-case Treasury scenario pointing to 4.3% in early 2027.
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