UK Inflation Set for 2.9% Surge Amid Energy Price Cap Hike
UK Consumer Prices Index (CPI) inflation is expected to rise to 2.9% in July, driven primarily by a 13% hike in Ofgem's energy price cap.
Economists at Investec note that the energy price cap increase alone will add 0.5 percentage points to the July inflation figure.
The severe heatwaves and droughts across the UK and Europe are threatening crop supplies, which is expected to drive up food prices well into 2027.