British inflation edged higher in July, reaching an annual rate of 2.9%, the strongest pace since March. The increase was largely attributed to a jump in household energy costs after the energy regulator Ofgem raised the price cap by 13%.

Key figures

The Office for National Statistics reported that consumer price inflation rose from a 15‑month low of 2.6% in June to 2.9% in July. Core inflation, which excludes volatile energy and food prices, was slightly above expectations at 2.6%.

Market reaction

Financial markets showed little immediate movement. The British pound and government bond futures remained largely unchanged after the data release, reflecting that the numbers were broadly in line with forecasts.

Official comments

Finance Minister John Healey noted that while the ongoing conflict in Iran continues to affect prices, the British economy remains resilient. He emphasized the government’s commitment to monitoring energy costs and supporting households.

Outlook

Economists had widely expected inflation to rise to 2.9%, matching the latest Reuters poll. The Bank of England had projected a slightly lower increase to 2.8% in its recent forecasts. Analysts will watch upcoming monetary policy meetings for any adjustments in response to the higher energy price cap.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.