XPS says UK CPI inflation rises to 2.9% in July as energy price cap jumps

• XPS Pensions Group commentary flagged UK CPI inflation rising to 2.9% in July from 2.6% in June, broadly matching expectations.
• Pointed to a 13% rise in Ofgem’s energy price cap from July 1 as a key driver, lifting household exposure to global energy prices.
• Noted DB scheme funding support from higher nominal gilt yields; XPS DB:UK analysis showed aggregate surplus above GBP 240 billion as of Aug. 14, 2026.
• Warned inflation caps in DB benefits could erode retirees’ real income even with strong headline funding levels.
• Urged trustees, sponsors to review risk exposures to keep hedging resilient amid potential gilt, inflation-market volatility.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. XPS Pensions Group plc published the original content used to generate this news brief on August 19, 2026, and is solely responsible for the information contained therein.