Suren Thiru of the Institute of Chartered Accountants in England and Wales said June’s slowdown in U.K. inflation is likely temporary as Ofgem’s planned energy price-cap rise will probably reverse the improvement and could push headline inflation above 3%. He said weak growth may limit second-round effects but escalating tensions with Iran make 4% possible; today’s data have ended prospects of a Bank of England rate rise in June, and high inflation could deepen the cost-of-living crisis and beco

Suren Thiru of the Institute of Chartered Accountants in England and Wales said June’s slowdown in U.K. inflation is likely temporary as Ofgem’s planned energy price-cap rise will probably reverse the improvement and could push headline inflation above 3%. He said weak growth may limit second-round effects but escalating tensions with Iran make 4% possible; today’s data have ended prospects of a Bank of England rate rise in June, and high inflation could deepen the cost-of-living crisis and become a bigger political and economic problem.