UK consumer price inflation rose in the 12 months to July 2026, the Office for National Statistics (ONS) reported on 19 August 2026. The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 3.1%, up from 2.8% in June, and the Consumer Prices Index (CPI) rose by 2.9%, up from 2.6%1. The ONS said this was the first time since March 2026 that either 12-month rate had increased1.
On a monthly basis, CPIH rose by 0.3% in July 2026, having been little changed in July 2025, and CPI rose by 0.3%, compared with a rise of 0.1% a year earlier1. The largest upward contribution to the change in the annual rate came from housing and household services, particularly gas and electricity; transport made the largest partially offsetting downward contribution1.
Within housing and household services, the 12-month rate was 4.1% in July 2026, up from 2.7% in June. 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 said the increase was the largest rise in gas prices since October 2022 and left gas prices at their highest level since March 20241.
The ONS attributed the rise mainly to changes to standard variable tariffs, where there was a change in the Ofgem energy price cap in July 20261. Ofgem estimated that for an average household paying by direct debit for dual fuel, this equates to an annual bill of £1,862, a rise of £2211. The ONS said the cap rose in part because of higher wholesale energy prices, and that the 12-week assessment period used to calculate the July to September 2026 (Quarter 3) cap, from 18 February to 18 May 2026, was the first affected by the outbreak of the conflict in the Middle East1.
"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."
| Measure | 12 months to June 2026 | 12 months to July 2026 |
|---|---|---|
| CPIH | 2.8% | 3.1% |
| CPI | 2.6% | 2.9% |
| CPIH housing and household services | 2.7% | 4.1% |
| CPIH gas | not given | 14.7% |
| CPIH electricity | not given | 3.6% |
| Core CPIH | 2.8% | 2.9% |
| Core CPI | 2.6% | 2.6% |
Source: ONS, Consumer price inflation, UK: July 20261
Core CPIH, which excludes energy, food, alcohol and tobacco, rose by 2.9% in the 12 months to July 2026, up from 2.8% in June. Core CPI was unchanged at 2.6%. The CPIH goods annual rate rose from 1.7% to 2.2%, while the CPIH services annual rate was unchanged at 3.6%; the CPI services annual rate eased from 3.6% to 3.4%1.
Why it matters for households
The July figures show the energy component of the household budget moving against the recent trend. Gas and electricity together made the largest upward contribution to the change in the annual CPIH rate, and the ONS links that directly to the July change in the energy price cap1. For a household on a standard variable tariff, the Ofgem estimate of £1,862 for average dual fuel direct debit use, £221 higher, is the clearest single number in the release1.
The wider inflation rate matters for household energy independence because it shapes the cost of borrowing and the real value of incomes, both of which affect what a household can put towards measures such as insulation, heating controls or a boiler upgrade. The ONS also publishes household costs indices (HCIs), described as reflecting the change in costs and prices experienced by different households, though it states these are official statistics in development1. The ONS treats CPIH as its lead measure of inflation and RPI as a legacy measure required to meet existing user needs1.
The ONS notes that the owner occupiers' housing costs component accounts for approximately 18% of CPIH and is the main driver of differences between the CPIH and CPI rates1. The full official energy statistics releases, including Energy Trends and Quarterly Energy Prices, sit alongside this inflation data.
What happens next
The next release of the consumer price inflation bulletin is scheduled for 16 September 20261. The ONS has not reported in these sources what the October 2026 price cap, covering Quarter 4 2026, will be.
Sources2 cited
- Consumer price inflation, UK - Office for National Statistics, ons.gov.uk
- Consumer price inflation, UK, ons.gov.uk