Commenting on the latest ONS inflation data, Kevin Brown, savings expert

“Inflation is on the rise again. July’s 13 per cent increase (1) in the energy price cap means more of the impact of the conflict in the Middle East is now landing directly on UK household bills, with another increase expected in October (2).

“Yet energy may only be exerting part of the pinch this autumn. Expensive fuel and fertiliser are adding pressure to food production and supply chains, while an exceptionally hot summer raises another threat to harvests (3). As a result, families may continue to feel the inflationary fallout from this at the till as well as through their utility bills.

“The Bank of England is expected to hold rates in September, although it will have August’s inflation reading to consider before then. But with the majority of forecasts pointing to inflation remaining above its 2 per cent target into next year (4), policymakers face the perpetual balancing act of getting ahead of rising prices without choking off economic momentum.

“For households, that makes getting the most from every penny ever more important. Competitive savings rates can help cash work harder, while those with a greater appetite for risk and a longer-term horizon may want to consider investing for the potential to achieve returns that outpace inflation over time.”

(1) Source: https://www.telegraph.co.uk/business/2026/08/16/few-can-see-it-but-britains-inflation-is-about-to-soar/

(2) Source: https://moneyweek.com/economy/inflation/inflation-forecast-where-are-prices-heading-next

(3) Source: https://www.telegraph.co.uk/business/2026/08/16/few-can-see-it-but-britains-inflation-is-about-to-soar/

(4) Source: https://moneyweek.com/economy/inflation/inflation-forecast-where-are-prices-heading-next