UK inflation rose to 2.9% in the 12 months to July, according to the Office for National Statistics (ONS), accelerating from a 2.6% annual rate in June. The latest figures, reported by BBC Business, show the price of goods and services rising at a faster pace than in the previous month. The ONS said the increase was driven by an increase in gas prices and a lift to the energy price cap.
Inflation reaches 2.9%
The July reading of 2.9% marks a 0.3 percentage point increase from June, when the annual rate stood at 2.6%. According to BBC Business, the figures cover the 12 months to July and were released by the Office for National Statistics. The ONS identified two drivers: higher gas prices and the increase to the energy price cap.
| Metric | June | July | Change |
|---|---|---|---|
| Annual inflation rate | 2.6% | 2.9% | +0.3 percentage points |
Ofgem price cap adds £221 to typical energy bill
Energy costs rose on 1 July after regulator Ofgem implemented a 13% increase in the price cap on household gas and electricity bills, according to BBC Business. The change adds £221 a year to the typical household's bill. Because the increase took effect on 1 July, the month covered by the new inflation data, energy was a central contributor to the July figure.
Energy costs rose on 1 July after regulator Ofgem's 13% increase in the price cap on household gas and electricity bills, adding £221 a year to the typical household's bill.
— BBC Business
Key numbers at a glance
- 2.9% — UK inflation rate in the 12 months to July
- 2.6% — UK inflation rate in the 12 months to June
- 13% — Ofgem's increase to the energy price cap
- £221 — additional annual cost for a typical household
- 1 July — effective date of the energy price cap rise
What the acceleration means
The move from 2.6% to 2.9% means the cost of goods and services is now rising at a faster pace than in the year to June, according to BBC Business. The ONS's attribution points to the energy market: gas prices and the regulator-administered price cap drove the increase. The ONS did not name other drivers in the BBC Business report.
The July figure covers the month that began with the 1 July price-cap increase. The June rate of 2.6% predates that change. For executives and investors tracking UK price pressures, the timing matters: energy is the named driver, and the £221 annual increase to a typical household's bill is part of the period covered by the July data.
Report details
The BBC Business report on the ONS figures was written by Faarea Masud and published on 19 August 2026. The report's headline summarises the July data. No date for the next ONS inflation release was included in the report.
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