Energy Price Hike Sends UK Inflation Back Up

Rising energy costs in the UK are poised to send inflation back up after a brief dip in June, when it hit its lowest level in 15 months. According to economists, this summer's heatwaves and World Cup have given the economy a temporary boost.

However, the recent hike in Ofgem's energy price cap has added pressure on household budgets. The average gas and electricity bill will now rise by £221, or 13%, to £1,862 per year. This increase alone is expected to add 0.5 percentage points to July's inflation reading.

Economist Ellie Henderson noted that any easing of inflationary pressures was likely temporary, with the energy price cap hike set to erase progress towards the Bank of England's two percent target.