UK Inflation Set to Rise as AI Chip Shortage Bites

UK inflation is expected to rise as an AI chip shortage and higher energy costs put pressure on the economy. According to a Bloomberg survey, the median economist estimate predicts a 2.9% jump in July.

The Bank of England is on high alert as the UK's labor market shows signs of improvement, with economists predicting wage growth excluding bonuses held at 3.4% in the three months to June and the unemployment rate set to edge down to 4.8%.

The AI-driven memory-chip shortage is driving up electronics prices, with Apple laptops and tablets as well as Xbox gaming consoles already set to get more expensive.