A sharp rise in energy bills due to the war in Iran is expected to push up inflation, signaling a renewed cost-of-living crisis in the United Kingdom, according to The Guardian. The timing of the latest forecasts comes after a period when inflation had been trending in a more favorable direction.
Official data had shown a clearer downward path of the inflation rate earlier in the year, raising hopes that the Bank of England's 2% target was within reach. Those hopes have now evaporated due to higher wholesale energy costs that began to accumulate after the conflict in the Middle East escalated.
"As the Iran war continues to send shock waves through global energy markets, economists predict the surge in UK gas and electricity bills last month will push Britain's headline inflation rate to 2.9%," the British publication states.
That prediction is based on the impact of the July rise in the energy price cap set by the regulator
