Inflation in the United Kingdom rises to 2.9% due to the increase in gas and ele

WHAT HAPPENED

Annual inflation rose to 2.9% in July, up from 2.6% in the United Kingdom and 2.8% in the eurozone. Energy was the main push: gas and electricity increased by 4.1% in the United Kingdom and 10% in the eurozone.

WHY IT MATTERS

If something cost 100 pounds or euros a year ago, it now costs about 103. The impact is particularly noticeable on energy bills. As prices accelerate again, the Bank of England and the European Central Bank may keep their rates high: mortgages, credit cards, construction, and loans would remain expensive.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, this means that borrowing money in Europe may continue to be costly and that credit-sensitive companies — such as construction firms and consumer companies — could face more pressure. At home, the direct effect is on electricity, gas, and monthly payments.