Inflation Climbed Back to 2.9% in July
Consumer prices rose by 2.9% in the 12 months to July, up from 2.6% in June - the first time the annual rate has risen since March. The wider CPIH measure rose to 3.1%. The ONS put the increase down to housing and household services, and in particular gas and electricity, where it recorded the largest monthly rise in gas prices since October 2022. Core inflation, which strips out energy and food, was unchanged at 2.6%, and services inflation eased slightly to 3.4%.
For households, a higher headline rate narrows the real return on savings and makes a near-term cut to the Bank of England base rate, held at 3.75%, less likely - the Bank next decides on 17 September. Cheaper motor fuel, with diesel down over the month, was the main force pulling the other way. Your own rate depends on what you actually buy, so the headline figure is rarely the number in your budget.
Source: ONS - Consumer price inflation, July 2026 | Related: Real Cost of Living tool
HMRC Consults on the Pension Access Age Rising to 57
HMRC has opened a technical consultation on draft rules for the increase in the normal minimum pension age - the earliest you can normally draw a private or workplace pension - from 55 to 57 from 6 April 2028. The draft protects people who are 55 or 56 just before the change and have already become entitled to their benefits, so payments made after the switch still count as authorised for tax. The consultation was published on 6 August and closes on 28 September.
The practical point for anyone planning to retire around that age is that 57, not 55, becomes the earliest access point from 2028, though some older scheme rules carry a protected pension age that is unaffected. This is separate from the State Pension age, which is not changing here.
Source: GOV.UK - Normal Minimum Pension Age consultation | Related: Retiring Before 57 guide
Unused Pensions Come Into Inheritance Tax from April 2027
From 6 April 2027, most unused pension funds and death benefits will count as part of your estate for inheritance tax, a change confirmed by the government after it was announced in the 2024 Autumn Budget. Pensions have long sat outside the estate, so this removes one of the biggest advantages of leaving a pot untouched to pass on. The government expects the change to bring tens of thousands more estates into inheritance tax each year.
One knock-on is already visible: Moneyfacts reports that annuity rates have risen over the past six months, helped by higher gilt yields, which makes securing a guaranteed income more attractive relative to leaving a pot invested. Whether to keep drawing down or buy an annuity is a personal call, but the April 2027 change gives estate planning a firmer deadline than it had before.
Source: GOV.UK - Inheritance Tax: unused pension funds and death benefits | Related: Pensions and inheritance tax guide
Key Dates
26 August 2026 (Wednesday) - Ofgem confirms the October to December energy price cap.
17 September 2026 (Thursday) - next Bank of England interest-rate decision.
28 September 2026 (Monday) - HMRC's consultation on the pension access age closes.
6 April 2027 - unused pensions are brought into inheritance tax.