British households are facing a renewed cost‑of‑living squeeze, with inflation expected to jump in July as soaring energy bills feed through into official data. Economists told The Guardian they expect the headline rate to rise to around 2. 9%, up from 2. 6% in June, driven by sharp increases in gas and electricity costs linked to the Iran conflict’s impact on global energy markets.
The figures, due from the Office for National Statistics on Wednesday, come as the Bank of England weighs whether to raise interest rates as early as September amid concerns that stubborn inflation could become entrenched.
