New UK cost of living crisis looms with soaring energy bills forecast to lift inflation

UK households are facing a renewed cost of living squeeze, with soaring energy bills forecast to drive up inflation in July to close to 3%. This development poses a significant challenge for the new Prime Minister, who must now address the pressures on households amid ongoing global uncertainty. The rise in energy bills, partly due to the Iran war's impact on global energy markets, will likely lead to increased living costs for many British families.

Why it matters

Soaring energy bills are expected to increase inflation, which will put pressure on households. The new PM will face a challenge in easing these pressures, especially with the Iran war fallout affecting the economy.

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