UK Inflation Rises to 2.9% as Iran War Pushes Up Energy Bills

UK CPI inflation rose to 2.9% in July 2026, up from 2.6% in June — the first increase since March, per the ONS. Gas and electricity prices drove the rise, the sharpest summer energy bill increase in four years, linked to the US-Israel war on Iran's impact on wholesale gas prices. It was the biggest UK gas price jump since Russia's 2022 invasion of Ukraine.