UK household energy bills jump 13% as new Ofgem price cap begins

Key Facts

Adding further strain to UK household budgets, the regulator Ofgem's latest price cap has taken effect, raising annual energy bills by 13%. According to BBC reports, the increase reflects higher wholesale energy costs being passed through to consumers.

The price hike comes amid ongoing volatility in global energy markets and coincides with weak consumer confidence indicators in both the UK and Europe. The Confederation of British Industry's retail sales index plunged to -54 in June, per market data, signaling a sharp contraction in consumer spending.

The higher energy costs are expected to fuel near-term inflation and could influence the Bank of England's monetary policy stance going forward. Investors will watch upcoming UK inflation data for further signs of persistent price pressures.