Overview
- Economists forecast June consumer price inflation fell to roughly 2.4–2.6 percent driven mainly by a sharp drop in petrol and diesel prices.
- The RAC reported diesel fell by more than 16p a litre through June, the largest monthly fall on record and a key factor pulling headline inflation down.
- Ofgem raised the household energy price cap in July by about 13 percent, which increases the typical annual gas and electricity bill by £221 to £1,862 and offsets some of the petrol-driven relief.
- Renewed Middle East tensions have pushed Brent crude higher in July, which could reverse recent fuel-price falls and lift inflation again in the months ahead.
- Analysts say the incoming prime minister’s choice of chancellor and early fiscal moves will shape whether the slowdown lasts, and some forecasters expect inflation could peak near about 3.5 percent later this year.