UK Inflation Rises as Energy Shock Hits from Iran War

UK inflation has risen to 3.1% due to an energy shock stemming from the Iran war, which has disrupted global oil and gas supplies and sent wholesale costs soaring.

The UK's Consumer Prices Index (CPI) has climbed, reversing a recent downward trend and putting pressure on households and businesses.

The primary driver of the inflation rise is the surge in global energy prices, particularly in the UK, which imports most of its energy.

The Bank of England (BoE) is now widely expected to hold interest rates steady for the remainder of 2026.