The Bank of England is widely expected to raise interest rates next month, despite the ongoing energy shock. Higher rates typically do not lower oil prices, but the central bank appears committed to this course of action.
Last month, the UK's price inflation came in slightly higher than market forecasts, adding urgency to the Bank of England's decision. Governor Andrew Bailey has signaled that inflation remains a top concern.
The move comes amid a complex economic backdrop, where energy prices continue to fluctuate unpredictably. Analysts are divided on whether rate hikes will effectively curb inflation without stifling economic growth.