UK Inflation Set for Summer Surge as Energy Bills Bite

UK inflation is expected to surge in July due to higher energy bills and rising food costs.

The Consumer Prices Index (CPI) inflation rate is forecasted to rise to 2.9% in July, up from a 15-month low of 2.6% in June.

This increase is largely attributed to the 13% hike in Ofgem's energy price cap last month, which saw average gas and electricity bills jump by £221 to £1,862 per year.

Investec economist Ellie Henderson predicts that the energy price cap rise alone will add 0.5 percentage points to inflation for July.