UK inflation likely to rise because of Middle East war, says Rachel Reeves
Chancellor says she is ready to help households with rising costs but stops short of setting out specific steps
Britain is likely to be hit by rising inflation because of the US war with Iran, the chancellor has said, as she suggested that a rapid de-escalation" would be the best protection against a jump in energy prices.
Rachel Reeves stopped short of setting out any new relief for families who might be hit by rising prices, rebuffing calls to ditch a planned 5p rise in fuel duty in September.
The price of Brent crude oil rocketed to as high as $119.50 on Sunday, a jump of 29%.
The Bank of England is now expected to keep interest rates on hold through 2026, with a small possibility of a rise in 2027.
The prospect of a prolonged conflict and higher inflation also pushed global markets lower.
The AA said drivers could consider cutting out some non-essential journeys and changing their driving style to conserve fuel".
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