ONS releases Consumer price inflation, UK: July 2026 bulletin

The Office for National Statistics published its consumer price inflation bulletin for July 2026 on 19 August 2026. 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, while 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. Core CPIH, which excludes energy, food, alcohol and tobacco, rose by 2.9% over the 12 months, up from 2.8% in June. Core CPI rose by 2.6%, unchanged from June. 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.

Measure	12 months to June 2026	12 months to July 2026
CPIH	2.8%	3.1%
CPI	2.6%	2.9%
Core CPIH	2.8%	2.9%
Core CPI	2.6%	2.6%
CPIH goods	1.7%	2.2%
CPIH services	3.6%	3.6%
CPI services	3.6%	3.4%

Source: ONS, Consumer price inflation, UK: July 2026¹

The largest upward contribution to the change in the annual CPIH rate came from housing and household services, where the 12-month rate rose to 4.1% in July from 2.7% in June. Prices in the division rose by 0.9% in the month, compared with a fall of 0.4% a year earlier. 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 following a change in the Ofgem energy price cap in July 2026, and that 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 described it as the largest rise in gas prices since October 2022, leaving gas prices at their highest level since March 2024¹.

"The price 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 2026]"

Office for National Statistics, Consumer price inflation, UK: July 2026¹

Transport made the largest partially offsetting downward contribution, with its 12-month CPIH rate falling from 5.7% in June to 3.6% in July. Furniture and household goods moved from a fall of 0.2% to a rise of 1.0%, and clothing and footwear from a fall of 0.5% to a rise of 0.5%¹. The ONS also noted that it introduced scanner data for approximately 50% of the grocery market with the February 2026 index, published on 25 March 2026, and that from 2030 at the earliest, CPIH methods and data sources will be introduced into the Retail Prices Index¹. A separate time series database covering CPIH, CPI and RPI was also published on 19 August 2026².

Why it matters for households

Higher inflation means the general level of prices is rising faster than a month earlier. For households, the July figures reflect energy costs in particular: the ONS attributes the increase mainly to gas and electricity prices following the July 2026 change in the energy price cap, with an estimated £1,862 annual dual fuel bill for an average household paying by direct debit, £221 more than before¹. Households on standard variable tariffs are the group the ONS identifies as most affected by that change¹.

The figures also matter for anyone holding savings, because the return on a savings account is measured against the rate at which prices are rising. With CPIH at 3.1% and CPI at 2.9% in the 12 months to July 2026, a savings rate below those figures means the money buys less than a year earlier¹. The ONS notes that owner occupiers' housing costs account for approximately 18% of CPIH and are the main reason CPIH and CPI differ¹.