# British Pound: Energy-driven inflation risks support GBP against US Dollar – MUFG

> MUFG says rising European natural gas prices are reviving UK inflation risks that could push the Bank of England toward another rate hike. UK natural gas futures rose 62.5% since early July, with the close the highest since January 2023. Crude oil has been more contained.

- Date: 2026-08-28 · published 2026-08-28T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/18144-british-pound-energy-driven-inflation-risks-support-gbp-against-us-dollar-mufg
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md), [Natural Gas](https://feedsoft.ai/c/NATGAS.md)

## Why it matters

Higher gas prices raise UK inflation and rate-hike expectations, supporting sterling. Energy costs also feed into fertilizer, processing and feed production costs.

## Read by commodity

- GBPUSD: bullish ▲
- NATGAS: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| NATGAS | 2021-08-06 | [Natural gas prices surge as energy transition-driven demand outstrips supply](https://feedsoft.ai/events/45736-natural-gas-prices-surge-as-energy-transition-driven-demand-outstrips-supply.md) | -4.5% | +10.5% |
| NATGAS | 2022-06-30 | [Euro to Hit Parity against Dollar by August says Nomura](https://feedsoft.ai/events/41162-euro-to-hit-parity-against-dollar-by-august-says-nomura.md) | -8.1% | +28.0% |
| NATGAS | 2022-07-05 | [Euro slides to 20-year low against the dollar as recession fears build](https://feedsoft.ai/events/10286-euro-slides-to-20-year-low-against-the-dollar-as-recession-fears-build.md) | +15.3% | +43.6% |
| NATGAS | 2018-07-03 | [Gas traders fear US winter price spike - Energy Risk](https://feedsoft.ai/events/64222-gas-traders-fear-us-winter-price-spike-energy-risk.md) | -1.3% | -2.8% |
| NATGAS | 2021-01-14 | [What the Rally in Gas Prices Tells us about Gas Markets and Energy Security](https://feedsoft.ai/events/49334-what-the-rally-in-gas-prices-tells-us-about-gas-markets-and-energy-security.md) | -10.2% | +55.7% |

## Sources

- fxstreet.com: https://www.fxstreet.com/news/british-pound-energy-driven-inflation-risks-support-gbp-against-us-dollar-mufg-202608280929

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.