Inflation likely to fall – but not for longpublished at 06:55 BST
Ben King
Business reporter, BBC News
As we just reported, inflation numbers could see a temporary dip as a result of lower petrol and diesel prices.
June saw a period of relative calm in the US-Iran war, when Washington and Tehran agreed to halt military operations and reopen the Strait of Hormuz – a key route for global oil supplies.
This led to cheaper prices at the pumps.
Lower inflation is, however, expected to be short-lived. The price cap on gas and electricity rose in July, lifting the typical household energy bill by 13%.
Meanwhile, the resumption of military strikes in the Middle East has sent oil prices back over $90 a barrel. If it stays elevated, that risks inflaming inflation.
For now, much depends on how long the war continues, and how high energy prices remain.
Image source, Getty ImagesA petrol forecourt on London on 29 May
