- UK Consumer Prices Index inflation is forecasted to rise to 2.9% in July, driven primarily by a 13% hike in Ofgem's energy price cap.
- Economists at Investec noted that the energy price cap increase alone will add 0.5 percentage points to the July inflation figure.
- Severe heatwaves and droughts across the UK and Europe are threatening crop supplies, which is expected to drive up food prices well into 2027.
- Analysts predict inflation could peak above 3% later this year, potentially forcing the Bank of England to raise interest rates to 4%.
- The upcoming Retail Prices Index figures for July will be key as they are used to determine next year's UK rail fare adjustments.
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