UK CPI inflation rose 0.3% MoM and 2.9% YoY in July, accelerating from 2.6% YoY in June and marking the first increase in the annual rate since March.

• Core CPI held at 2.6% YoY, with goods inflation rising to 2.2% from 1.7% while services inflation eased to 3.4% from 3.6%.
• Housing and household services were the largest upward driver. Gas prices surged 14.7% MoM after the Ofgem energy price cap increased, the largest monthly rise since October 2022, while electricity prices rose 3.6%.
• Transport provided the largest downward contribution: diesel prices fell 8.8p per litre MoM and petrol fell 3.1p, helping slow motor fuel inflation to 15.5% YoY from 21.3%. Food inflation also eased to 1.3% YoY from 1.7%.