- UK Consumer Prices Index inflation rose to 2.9 per cent in July, up from 2.6 per cent in June, moving further above the Bank of England's 2 per cent target.
- The rise was primarily driven by a sharp increase in gas prices following a 13 per cent hike in Ofgem's energy price cap.
- Food and drink annual inflation fell to 1.3 per cent in July, but experts warn that heatwaves, droughts, and the war involving Iran could push grocery prices back up.
- Economists project inflation could peak at around 3.5 per cent by the end of the year, though the Bank of England is unlikely to raise interest rates in response.
- Business groups have called on the government to use the upcoming Budget to provide relief and support for firms facing rising operational costs.
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