The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
At a time when UK inflation remains sticky and the Bank of England is weighing rate cuts, the 13% increase in energy bills adds fresh pressure on household finances. The new Ofgem price cap, effective from July 1, 2026, raised the typical annual household bill by 13%, as the regulator adjusted for higher wholesale energy costs, according to BBC reports.
The increase, while anticipated, will weigh on consumer spending and dampen confidence. It follows a period of elevated global energy prices that continue to strain the UK market, with the pound under pressure. Markets will watch upcoming June retail sales data for signs of a pullback in spending.
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Sign InTraders will monitor upcoming UK inflation figures and the Bank of England's August rate decision. Any government intervention to cushion the impact, such as expanded warm home discounts, could alter the outlook. Energy utility stocks like SSE and Centrica may see limited direct impact as the cap allows cost pass-through.