UK Inflation Rises to 3.8% – What It Means for Your Energy Bills

The Office for National Statistics (ONS) today confirmed that UK inflation rose to 3.8% in July 2025, up from 3.6% in June – the highest rate since January 2024. The increase was driven mainly by air fares and motor fuels, while housing and household services, including owner-occupiers’ housing costs made a downward contribution.

Global energy markets remain volatile, with commodity price rises feeding through into fuel and electricity bills. Government policy changes such as increases to wages and national insurance also mean service industries, including hospitality and transport, are passing higher costs on to consumers. The Bank of England has already warned that inflation could peak at 4% this autumn, making another round of higher energy bills increasingly likely.

Unlike households, UK businesses are not protected by an Ofgem price cap, meaning they are far more exposed to changes in the wholesale market. Rising inflation and energy price uncertainty translate quickly into higher operating costs, with SMEs facing sustained pressure on electricity rates and energy intensive industries paying some of the highest prices in Europe. This remains a key concern for high energy users and the manufacturing and engineering sectors in particular, where energy costs represent a significant share of overall expenditure.

With inflation remaining above target and energy markets highly sensitive to global events, businesses and households are increasingly looking for ways to take control of their energy use. For many, this means exploring renewable energy solutions such as solar PV and battery storage, which not only reduce exposure to volatile market prices but also deliver long-term cost savings and carbon reductions.

Read more: https://solarsense-uk.com/news/uk-inflation-rises-in-july-2025-and-what-it-means-for-your-energy-bills/