UK's annual inflation hits 4-month high at 2.9%

The consumer price index in the UK was at 2.9% in July, hitting its highest rate since March, the Office for National Statistics (ONS) announced on Wednesday.

The annual rate rose from 2.6% in June 2026, the ONS stated.

On a monthly basis, consumer inflation was at 0.3% last month, up from 0.2% in June.

Housing and household services and furniture made the largest upward contributions to the inflation rate, while transport made the largest partially offsetting downward contribution.

Core CPI – excluding energy, food, alcohol and tobacco – rose by 2.6% in July, unchanged from June.

Producer prices

In July, producer input prices rose by 4.9% on a yearly basis, down from a revised rise of 7.4% in June.

Producer output, or factory gate, prices rose by 3.1% in July 2026, down from 3.5%.

On a monthly basis, producer input prices fell by 1.7%, and producer output prices rose by 0.2% in July 2026.