UK Inflation Set to Rebound as Energy Bills Surge
Economists forecast CPI inflation will rise to 2.9% in July as a 13% energy cap hike and heatwave-driven food costs feed through.
- The Office for National Statistics will release July inflation figures on Wednesday showing Consumer Prices Index inflation rising to around 2.9% from 2.6% in June, driven largely by higher household energy costs.
- Last month's 13% hike in Ofgem's energy price cap increased average annual gas and electricity bills by £221 to £1,862, adding substantial upward pressure to inflation and household budgets.
- The Food and Drink Federation reported that recent heatwaves have hit "fruit, vegetable and grain supply," with crop shortages set to feed into supermarket prices, while industry warned earlier this year that Middle East conflict-driven food inflation could reach 10 per cent this year.
- Victoria Scholar, head of investment at Interactive Investor, forecasts The Bank of England will raise interest rates from 3.75% to 4% by year-end as the central bank carries out roughly one 25 basis point hike to combat overheating.
- UK economic growth slowed to 0.4 per cent earlier this week amid higher prices and borrowing costs caused by the Iran war, with inflation projected to peak above 3% later this year as elevated energy prices and Strait of Hormuz gridlock persist.
11 Articles
11 Articles
Energy bill price cap could contribute to inflation
UK inflation is expected to have risen sharply in July, due to a 13% increase in the energy price cap that pushed up household gas and electricity bills, reports the Guardian. Economists forecast the Consumer Prices Index to have climbed to 2.9%, up from 2.6% in June, with higher energy costs expected to be a key contributor when official figures are published this week. The increase in the Ofgem price cap came as global energy markets faced ren…
UK Inflation Set to Rebound as Energy Bills Surge
Rising energy prices are poised to send UK inflation rearing back up, as economists warn that the summer boost to the economy could be fleeting. The rate of Consumer Prices Index (CPI) inflation is tipped to rise to 2.9 per cent in July, climbing from June’s 15-month low of 2.6 per cent, when the Office for National Statistics (ONS) releases its figures on Wednesday. While frequent heatwaves and the World Cup have boosted the UK’s summer economy…
Cost of living crisis: Economists warn 'inflation expected to rise' after shock energy bill hike
Britain's cost of living crisis is expected to be prolonged even further as soaring energy bills will likely push up inflation, analysts warn.Official inflation figures due out on Wednesday are widely expected to show a sharp jump in the consumer prices index to 2.9 per cent for July, marking the highest level since March and a significant leap from June's 15-month low of 2.6 per cent.The anticipated rise is largely driven by Ofgem's 13 per cent…
Soaring energy bills set to fuel inflation spike
Rising energy prices are poised to send UK inflation rearing back up, as economists warn that the summer boost to the economy could be fleeting. The rate of Consumer Prices Index (CPI) inflation is tipped to rise to 2.9 per cent in July, climbing from June’s 15-month low of 2.6 per cent, when the Office for National Statistics (ONS) releases its figures on Wednesday. While frequent heatwaves and the World Cup have boosted the UK’s summer economy…
UK inflation expected to surge as higher energy bills bite
Holly Williams, Press Association Business Editor Higher energy prices are expected to send UK inflation surging back up when official figures are released on Wednesday amid fears the summer’s record heatwaves may also start putting pressure on food costs. Many experts are forecasting that Consumer Prices Index (CPI) inflation will rise to 2.9% in July, […] The post UK inflation expected to surge as higher energy bills bite appeared first on Nat…
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