The annual inflation rate in the UK rose to 2.9% in July 2026, the highest in four months, from 2.6% in June and in line with market expectations. The largest upward contribution came from housing and household services (4.1% vs 2.7% in June), particularly gas and electricity. Prices of furniture and household goods (1% vs -0.2%) and clothing and footwear rebounded (0.5% vs -0.5%). On a monthly basis, the CPI increased 0.3%, following a 0.1% rise in the previous month.