British households are bracing for a renewed cost of living squeeze, with new figures expected to show soaring energy bills pushed inflation close to 3% in July, according to the Guardian.
Key facts
- Economists predict UK headline inflation reached 2.9% in July, according to the Guardian.
- Soaring gas and electricity bills are cited as the main driver.
- Fallout from the ongoing Iran war continues to disrupt global energy markets.
- The latest inflation reading is due on Wednesday.
- The figures will help frame the scale of the challenge facing the new prime minister.
British households are facing a renewed cost of living squeeze, with official figures expected this week to show that soaring energy bills drove up inflation in July, according to the Guardian.
Economists predict the surge in UK gas and electricity bills last month will push Britain’s headline inflation rate to 2.9%, close to the 3% mark. The latest reading is due on Wednesday.
The Guardian reports that the increase in energy costs is closely tied to the ongoing Iran war, which continues to send shock waves through global energy markets.
The forthcoming inflation data is expected to frame the scale of the challenge facing the new prime minister in easing pressures on households.
With energy bills identified as the key driver of the anticipated rise, the figures will offer a fresh gauge of how global instability is feeding through to prices paid by UK consumers.
Why it matters
Rising inflation driven by energy costs directly erodes household budgets, making everyday essentials more expensive. The figures will also test the new prime minister's ability to respond to mounting pressure on families amid international turmoil.
Frequently asked questions
How high is UK inflation expected to be for July?
Economists predict the headline inflation rate reached 2.9%, close to 3%, according to the Guardian.
What is driving the expected rise in inflation?
Soaring UK gas and electricity bills, linked to the fallout from the Iran war disrupting global energy markets, are cited as the main driver.
When are the official figures released?
The latest inflation reading is expected on Wednesday, according to the Guardian.