Inflation Set to Surge Amid Energy Price Hike and Heatwaves

UK inflation is expected to surge back up in July after a 13% hike in energy prices. The Consumer Prices Index (CPI) inflation rate could rise to 2.9%, its highest since March, according to many experts.

This comes as the UK experiences record heatwaves, which may put pressure on food costs. The average gas and electricity bill has increased by £221 to £1,862 a year under Ofgem's energy price cap.

Meanwhile, struggling baby products firm Mothercare warned that there is 'material uncertainty' over its future if trading conditions worsen. Shares in the company fell 17% to 0.75p as it revealed tumbling revenues driven by uncertainty in the Middle East and the end of its UK supply deal with Boots.