0652 GMT - Despite a slowdown in June, inflation in the U.K. is set to rise again going forward, says Suren Thiru at The Institute of Chartered Accountants in England and Wales. "June's slowdown is a false dawn as it may have already been reversed this month with higher energy bills, following Ofgem's energy price cap rise, likely to have lifted inflation above 3%." Any second-round inflation effects from higher energy prices will likely be limited by a sluggish economy. But escalating tensions in Iran has put 4% inflation back on the table, Thiru says. Today's data has ended prospects of a rate hike by the Bank of England in June, but high inflation will likely become a more notable economic headache for the government, deepening the cost‑of‑living crisis, he says. (don.forbes@wsj.com)

(END) Dow Jones Newswires

July 22, 2026 02:52 ET (06:52 GMT)

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