UK Inflation Jumps 2.9% as Energy Costs Rise Amid Chip Shortage

UK consumer prices are set to grab headlines in the coming week as inflation accelerates for the first time in four months. According to a Bloomberg survey, median economist estimates predict a 2.9% jump in July. The main drivers of this increase are higher energy costs and an AI-driven memory-chip shortage.

The Iran war is contributing to increased plane travel costs, which are then reflected in household energy bills. This has the Bank of England on high alert as it monitors the situation closely.