UK Inflation Climbs to 2.9% as Energy Price Cap Squeezes 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 — a ceiling on what suppliers can charge — 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%.