UK Inflation Expected To Rise To 2.9% In July On Energy Hike
· Business · The Independent, Bloomberg, Financial Times
UK Consumer Prices Index inflation is forecast to rise to 2.9% in July, up from 2.6% in June, driven by higher energy bills. Ofgem implemented a 13% increase in its energy price cap last month, raising average gas and electricity bills by £221 to £1,862 annually. Investec economist Ellie Henderson stated that the energy cap increase adds 0.5 percentage points to July inflation. Additional pressures from record summer heatwaves affecting crop yields and ongoing disruptions in the Strait of Hormuz threaten to push inflation above 3% later this year. Victoria Scholar of Interactive Investor warns that persistent inflation could force the Bank of England to raise interest rates from 3.75% to 4% by the end of the year.
Why it matters
UK households face higher living costs as utility bills and food prices increase, potentially prompting central bank interest rate hikes.
Read the original report — The Independent
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.