# Surging energy prices push inflation up to highest level since March

By Chris Cheverall — 2026-08-19

Chris Cheverall, head of UK at CMC Markets, knows that energy is having a big say.

He said: “Inflation rising to 2.9 per cent clearly signals movement in the wrong direction, but the detail is slightly more nuanced. With core inflation unchanged, the pressures are still coming from energy rather than a broader pick-up in domestic prices.

“The Bank can look through an energy shock for a period. However, the problem is if those higher costs start feeding into wages, business pricing and services inflation, because that is when a temporary shock becomes a more persistent one.

“Markets will keep an eye on this, rather than treating this print as a straightforward signal that rates need to move higher. The next few inflation and wage numbers will be more important in showing whether this remains mainly an energy story, or whether it is starting to spread through the wider economy.”

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