Energy Price Cap Hike Set to Send July Inflation Surging The UK is on track for a 2. 9% inflation rate in July, with the recent energy price cap hike being the main driver behind this surge in prices.
Ofgem's 13% increase will add 0. 5 percentage points to July's inflation rate, pushing it back up towards pre pandemic levels. Energy costs are just one part of a perfect storm that is driving inflation upwards.
The looming Iran war threatens to send oil prices even higher as winter approaches, while this summer's heatwaves have devastated food production, leading to crop shortages and higher supermarket prices.