UK Inflation Rises to 2.9% as Energy Price Cap Hits Households

UK inflation rose to 2.9% in the year to July 2026, up from 2.6% in June, the ONS confirmed August 19. A 13% increase in Ofgem's quarterly energy price cap was the main driver. Another cap rise is expected in October. The OBR's Richard Miles warned in March that persistent energy costs could push year-end inflation near 3%.