UK Prices Rise Faster as Energy Bills Jump

UK inflation — the rate at which prices rise — climbed to 2.9% in the year to July 2026, up from 2.6% in June, the ONS confirmed August 19. The main cause was a 13% increase in Ofgem's energy price cap, a limit on what energy firms can charge households. Another rise is expected in October. The OBR's Richard Miles warned in March that ongoing energy costs could push year-end inflation near 3%.