Inflation is heating up but don't expect another crisis
Inflation is rising in the UK, though economists suggest it is unlikely to trigger a full-scale economic crisis. The government faces pressure to provide financial support in the upcoming budget while balancing public sector resources and tax implications.
Why it matters
Understanding inflation trends is critical for households and policymakers managing the cost-of-living crisis and economic stability.
Image source, Reuters Image caption, Prime Minister Andy Burnham
The fallout from the war in Iran cranked up the heat on households last month as energy bills rose - how uncomfortable could inflation get from here?
The first thing to remember is that a small amount of price rises is normal. It is the sign of a healthy, functioning economy.
But with food alone costing a third more than it did four years ago, thanks to a spike in inflation early in the war in Ukraine, it can feel a battle to make ends meet.
The good news is inflation since the war in Iran erupted has actually been more muted than economists initially feared.
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