The Office for National Statistics published its Consumer price inflation, UK: July 2026 statistical bulletin on 19 August 20261. The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 3.1% in the 12 months to July 2026, 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 the 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% in July 20251. The largest upward contribution to the change in the annual CPIH 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, with prices rising 0.9% in the month compared with a fall of 0.4% a year earlier1. Gas prices rose by 14.7% in July 2026, against a fall of 7.2% a year ago, and electricity prices rose by 3.6%, against a fall of 3.8% a year ago1. The ONS said the rise 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 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 increase was the largest rise in gas prices since October 2022 and that gas prices are 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 to calculate the July to September 2026 (Quarter 3) price cap ran from 18 February to 18 May 2026, making it the first assessment period where prices had been 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 owner occupiers' housing costs | 3.3% | 3.7% |
| CPIH goods | 1.7% | 2.2% |
| CPIH services | 3.6% | 3.6% |
| Core CPIH | 2.8% | 2.9% |
Source: ONS, Table 2, 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, while core CPI rose by 2.6%, unchanged from June1. The CPIH goods annual rate rose from 1.7% to 2.2%, while the CPIH services annual rate was unchanged at 3.6%1. The ONS also reported that furniture and household goods prices rose by 1.0% in the 12 months to July 2026, compared with a fall of 0.2% in the 12 months to June, and that this was the smallest July fall in prices since 19891.
Why it matters for households
The bulletin ties a rise in the headline inflation rate directly to household energy bills. The ONS attributes the largest upward contribution to the change in CPIH annual inflation to housing and household services, particularly gas and electricity, and links the gas and electricity price movements to the July 2026 change in the Ofgem energy price cap1. The Ofgem figure cited, £1,862 a year for an average household paying by direct debit for dual fuel, is £221 higher than before1.
For a household's energy independence, the composition of the increase matters. The ONS says the cap rose in part because of higher wholesale energy prices, and that the assessment period behind the July to September 2026 cap was the first affected by the outbreak of the conflict in the Middle East1. That points to exposure to wholesale and imported energy costs rather than to network or policy costs, though the bulletin does not break the increase down by cost component. The ONS also notes that the gas price rise was the largest since October 2022 and that gas prices are at their highest since March 20241.
The wider inflation figures set the context in which household budgets absorb the energy increase. CPIH at 3.1% and CPI at 2.9% are both above their June readings, and the CPIH goods annual rate rose from 1.7% to 2.2%1. Core measures, which strip out energy, food, alcohol and tobacco, moved less: core CPIH rose from 2.8% to 2.9% and core CPI was unchanged at 2.6%1. The ONS describes CPIH as its lead measure of inflation and the most comprehensive measure, with owner occupiers' housing costs accounting for approximately 18% of it1.
What happens next
The ONS gives a next release date of 16 September 2026 for the following month's bulletin1. The bulletin does not state any further dates for energy price cap changes or for wholesale price assessments beyond the 18 February to 18 May 2026 assessment period already described1. No further detail on the composition of the cap increase, or on any measures intended to offset it, is given in the bulletin1.