Consumer Prices Index (CPI) inflation stood at 2.9% in the 12 months to July 2026, up from 2.6% in June, the Office for National Statistics (ONS) reported on 19 August 2026. The CPI overall index was 142.9, a monthly rise of 0.3%1. The CPIH measure, which includes owner occupiers' housing costs, rose by 3.1% over 12 months, up from 2.8%1. The ONS said this was the first time since March 2026 that the 12-month rate had increased1.
Housing and household services made the largest upward contribution to the change, driven by gas and electricity. The division's 12-month rate rose to 4.1% from 2.7% in June, with prices up 0.9% in the month1. Gas prices rose by 14.7% in July 2026, against a fall of 7.2% a year earlier, and electricity prices rose by 3.6%, against a fall of 3.8% a year earlier1. The ONS attributed the gas rise mainly to changes in standard variable tariffs following a change in the Ofgem energy price cap in July 2026, and said Ofgem estimated this equates to an annual bill of £1,862 for an average household paying by direct debit for dual fuel, a rise of £2211. The ONS said the increase was the largest rise in gas prices since October 2022, and that gas prices are now at their highest level since March 20241.
The ONS said the price cap rose in part because of higher wholesale energy prices, and that the 12-week assessment period used by Ofgem for the July to September 2026 cap ran from 18 February to 18 May 2026, the first such period affected by the outbreak of conflict in the Middle East1.
Energy components of the CPI, 12-month and 1-month changes, July 2026:
| Component | Index (2015 = 100) | 12-month change | 1-month change |
|---|---|---|---|
| Electricity, gas and other fuels | 180.1 | 5.0% | 7.0% |
| Electricity | 193.2 | 2.1% | 3.6% |
| Gas | 159.0 | 8.0% | 14.7% |
| Liquid fuels | 209.1 | 42.8% | −1.0% |
| Solid fuels | 154.9 | 2.1% | −0.1% |
Source: ONS, Consumer price inflation, UK: July 20261
Transport made the largest partially offsetting downward contribution, with its 12-month rate slowing to 3.6% from 5.7%1. The ONS said the average price of diesel fell by 8.8 pence per litre between June and July 2026 to 167.6 pence per litre, and petrol fell by 3.1 pence per litre to 152.2 pence per litre1.
Core CPI, which excludes energy, food, alcohol and tobacco, rose by 2.6% in the 12 months to July 2026, unchanged from June, while core CPIH rose to 2.9% from 2.8%1.
"The rise in prices came mainly from changes to standard variable tariffs, where there was a change in the Office of Gas and Electricity Markets (Ofgem) energy price cap in July 2026."
Why it matters for households
The July figures show energy costs moving against the wider disinflation trend. Headline CPI had eased from 3.3% in March to 2.6% in June before rising again, and the ONS attributes that reversal principally to gas and electricity1. For a household, the practical effect is that the gas component of the index is now at its highest since March 2024, and the Ofgem estimate of £1,862 for an average dual-fuel direct debit household is £221 above the previous level1. That figure is an average across payment methods and regions, not a cap on any individual bill.
The split between the two inflation measures is also relevant to housing costs. CPIH includes owner occupiers' housing costs, which account for roughly 18% of that index and rose by 3.7% over 12 months, against 3.3% in June1. Households with a mortgage or buying outright therefore face a different inflation picture from those without. The ONS also noted that the July cap assessment period was the first affected by the Middle East conflict, so wholesale costs feeding into later caps have already shifted1. The market-data hub carries the underlying series, and UK domestic energy prices over time sets the July cap in its longer context.
What happens next
The ONS next release of consumer price inflation is scheduled for 16 September 20261. The bulletin does not state the level of the October 2026 price cap or any further cap announcement date; those have not been reported here.
Sources1 cited
- Consumer price inflation, UK, ons.gov.uk