UK Inflation Soars Amid Iran War-Driven Energy Price Hike
UK inflation has surged to its highest rate since March due to surging energy prices caused by the ongoing Iran war. According to the Office for National Statistics (ONS), Consumer Prices Index (CPI) inflation rose to 2.9% in July, up from a 15-month low of 2.6% in June.
The main driver behind this rise was Ofgem's energy price cap, which increased by 13% last month and pushed the average gas and electricity bill up by £221 to £1,862 per year. The ONS attributed this jump to the biggest rise in gas prices for almost four years.
Chancellor John Healey blamed the Iran war for driving up energy costs, saying it continues 'to impact prices here at home'. To mitigate the effects on households, he announced that VAT on electricity bills would be cut and bus fares capped at £2. However, experts warn that inflation may continue to rise as the conflict prolongs, with a 4% increase in the next energy price cap expected for October to December.