UK Inflation Rises to 2.9% on Higher Energy Costs

Societe Generale’s Sam Cartwright notes that UK headline inflation rose to 2.9% year-on-year in July.

The increase was driven mainly by higher household energy costs, which the note describes as an energy-driven upside risk for the UK inflation outlook.

The update puts the focus on the energy component of the inflation print and the potential for continued pressure from household energy prices.

Key data from the note:

• UK headline CPI: 2.9% y/y in July
• Main driver: household energy costs
• Risk framing: energy-driven upside risks