Inflation is heating up but don't expect another crisis

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.

In part, that's been because energy prices have not been as aggressive. Also higher energy costs haven't materialised in items such as food - inflation there, at 1.3%, is at actually at its lowest for close to five years.

Meanwhile wages and benefits have typically been outpacing inflation this year, lessening the squeeze for many - so far.

But existing energy cost pressures may push up the likes of food, and other prices, at a faster pace in coming months as they take many months to pass through supply chains.

In fact, economists expect inflation to take a further step up, to hit around 3.5% later in the year.