UK inflation is expected to have risen sharply in July, due to a 13% increase in the energy price cap that pushed up household gas and electricity bills, reports the Guardian.
Economists forecast the Consumer Prices Index to have climbed to 2.9%, up from 2.6% in June, with higher energy costs expected to be a key contributor when official figures are published this week.
The increase in the Ofgem price cap came as global energy markets faced renewed volatility following the conflict in Iran, raising concerns that households could face further pressure from energy costs.
The Bank of England has warned inflation could reach 3.2% later this year, potentially keeping interest rates higher for longer.
Measures announced by the government are expected to provide some relief. A planned VAT cut on electricity bills from October is forecast to save households an average of £45 a year, although energy costs remain a significant pressure on household finances.
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