UK Inflation Hits 2.8% as Fuel Prices Jump Up to 27% on Iran War Fallout

2 articles · Updated · Al Jazeera English · Aug 13

June consumer inflation in the UK eased to 2.8% from 3.0% in May, but the Bank of England expects price pressures to build again in the second half as energy costs rise.
Fuel has driven much of the squeeze since the February 28 US-Israel attack on Iran and the Strait of Hormuz closure: petrol prices rose 22% to 1.61 pounds a litre and diesel climbed 27% to 1.81 pounds by August 11.
Lower-income households are absorbing the sharpest hit because more of their budgets go to rent, energy, food and transport; the Joseph Rowntree Foundation says 7.4 million low-income families cannot afford essential items this year.
Food inflation slowed to 1.7% in June from 2.2% in May, but the Bank expects it to near 3.5% by December, while supermarkets see 4% to 5% by year-end.
At 2.8%, the UK sits mid-pack in the G7—below the US at 3.5% and Italy at 3.0%, but above Germany, France and Japan—as real wage growth slips to 0.1%.