UK Inflation Rises Amid Iran-Related Energy Shock

The Office for National Statistics (ONS) reported that the Consumer Prices Index (CPI) rose 2.9 % in the 12 months to July, up from 2.6 % in June. The increase was driven by a 13 % hike in the household energy price cap that took effect on 1 July, reflecting higher wholesale energy costs linked to the US-Iran conflict. Core CPI, which excludes food and energy, stayed at 2.6 %.

UK inflation rises to 2.9% as energy costs push prices higher

Inflation in the UK had been expected to hover near the Bank of England’s 2 % target after the pandemic surge and the 2022-23 energy price spikes. Renewed tension in the Strait of Hormuz and renewed attacks have pushed global oil and gas markets higher, feeding through to UK household energy bills.

BBC News

• CPI (July): 2.9 % (ONS).

UK inflation rises to 2.9% as energy costs push prices higher

• Core CPI: 2.6 % (unchanged).

UK inflation rises to 2.9% as energy costs push prices higher

• Energy price cap increase: 13 % (effective 1 July).

Energy bills push UK inflation up to 2.9%

• Goods inflation: 2.2 % (up from 1.7 %).

UK inflation rises to 2.9% as energy costs push prices higher

• Services inflation: 3.4 % (down from 3.6 %).

UK inflation rises to 2.9% as energy costs push prices higher

• Bank of England base rate: held at 3.75 % in July.

UK inflation rises to 2.9% as energy costs push prices higher

• VAT on electricity: slated for removal in October, announced by Prime Minister Andy Burnham.

UK inflation jumps to 2.9% in blow to Burnham's cost of living push

• Prime Minister Andy Burnham announced the future scrapping of VAT on household electricity bills to ease cost-of-living pressures.

UK inflation jumps to 2.9% in blow to Burnham's cost of living push

• Finance Minister John Healey said the British economy remains resilient despite the “Iran war inflation” impact.

Energy bills push UK inflation up to 2.9%

• Bank of England Governor Andrew Bailey warned the Bank will act if inflation stays elevated, noting a fragile growth outlook.

UK inflation jumps to 2.9% in blow to Burnham's cost of living push

• The Monetary Policy Committee kept the base rate at 3.75 % in July, with three members voting for a hike.

UK inflation rises to 2.9% as energy costs push prices higher

• “Iran war inflation continues to impact prices here at home, but Britain's economy is resilient,” — John Healey

Energy bills push UK inflation up to 2.9%

• “A renewed spike in inflation has been expected as the war in the Middle East continues to navigate a clunky ceasefire,” — Jonathan Raymond, investment manager at Quilter Cheviot

Energy bills push UK inflation up to 2.9%

• “We have cut VAT on electricity bills and capped bus fares at £2 – to give breathing space to those feeling the strain,” — John Healey

UK inflation jumps to 2.9% in blow to Burnham's cost of living push

• The Bank of England is expected to keep interest rates on hold for the rest of the year, though market participants are divided on whether oil-price volatility could force a shift.

UK Inflation Rises as Iran War Energy Shock Hits – BoE Expected to Hold Rates

• Analysts see inflation possibly peaking around 3 % later this year, contingent on energy price developments and the Middle-East ceasefire.

Energy bills push UK inflation up to 2.9%

• Households should anticipate further adjustments to the energy price cap, while energy-intensive businesses may face continued input-cost pressures.

UK Inflation Rises as Iran War Energy Shock Hits – BoE Expected to Hold Rates