Turin, 19 Aug. (LaPresse) – Inflation in the UK rose to 2.9 per cent in July, as the impact of the war with Iran on energy prices triggered renewed pressure on the cost of living for British households. This is according to The Guardian. The Office for National Statistics stated that inflation had risen from 2.6 per cent in June. In July, British consumers faced the sharpest summer rise in energy prices in the last four years, due to the war between the US and Israel against Iran, which has shaken global energy markets. Economists in the City had forecast a rise in the Consumer Price Index – a key measure of inflation – to 2.9 per cent. Against a backdrop of instability in the Middle East, the Bank of England is considering raising interest rates as early as next month, in response to fears that persistently high inflation could become entrenched in the economy. However, according to economists, data showing a slowdown in the labour market – including a fall in job vacancies and a slump in wage growth in the private sector – could dissuade the central bank from taking action.
United Kingdom: inflation rises to 2.9 per cent in July, driven by the conflict in Iran
Turin, 19 Aug. (LaPresse) – Inflation in the UK rose to 2.9 per cent in July, as the impact of the war with Iran on energy prices triggered renewed pressure on the cost of living for British households. This is according to The Guardian. The Office for National Statistics stated that inflation had risen from 2.6 per cent in June. In July, British consumers faced the sharpest summer rise in energy prices in the last four years, due to the war between the US and Israel against Iran, which has shaken global energy markets. Economists in the City had forecast a rise in the Consumer Price Index – a key measure of inflation – to 2.9 per cent. Against a backdrop of instability in the Middle East, the Bank of England is considering raising interest rates as early as next month, in response to fears that persistently high inflation could become entrenched in the economy. However, according to economists, data showing a slowdown in the labour market – including a fall in job vacancies and a slump in wage growth in the private sector – could dissuade the central bank from taking action.