Thiru: U.K. Inflation Expected to Rebound Sharply

According to Jin10, Suren Thiru of the Institute of Chartered Accountants in England and Wales said that although U.K. inflation slowed in June, it is expected to rise again. He said June's slowdown was only a temporary improvement, as higher energy bills may already have reversed the trend this month after the Office of Gas and Electricity Markets raised the energy price cap, potentially pushing inflation above 3%. Thiru added that weak economic growth could limit second-round inflation effects from higher energy prices, but escalating tensions involving Iran have made a 4% inflation rate possible again. He said today's data ends the prospect of a Bank of England rate hike in June, while high inflation could become a more prominent economic challenge for the government and further intensify the cost-of-living crisis.