UK inflation rises to 2.9% amid surge in gas prices following renewal of Iran conflict

ONS data

clock • 2 min read

Overall UK inflation rose by 2.9% in the 12 months to July 2026, up from 2.6% in June, with the increase driven by rising energy prices – particularly gas bills.

Housing and household services, which include energy costs, made the largest upward contributions to the monthly change in the two key inflation indexes tracked by the Office for National Statistics (ONS). The Consumer Prices Index (CPI) rose by 2.9%, up 30bps from the prior month, according to the ONS. The Consumer Prices Index including owner occupiers' housing costs (CPIH) also rose by 3.1% over the year to the end of last July, a monthly increase of the same level. Excluding energy, food, alcohol and tobacco, core CPI was flat, while core CPIH rose by just 0.1 percentage p...

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