Interest rates are not the tool to solve the inflation caused by the US’s war with Iran | Josh Ryan-Collins

AI Briefing

• – Inflation in the UK is being driven by the global shock caused by the war in Iran, particularly the closure of the Hormuz strait and resulting increases in oil and gas prices.
• – The UK is highly exposed to these price increases, with 70% of its gas coming from international imports and energy prices directly affecting electricity costs.
• – The government has taken steps to mitigate the impact, including a £53m package to support households in rural areas that rely on oil for heating.