wads of british pound sterling banknotes are stacked in piles at the money service austria companys headquarters in vienna austria november 16 2017 reutersleonhard foeger london aug 22 reuters  sterling fell to its lowest since midjuly against the dollar on monday as surging energy costs and a summer of strikes highlighted the uk cost of living crisis and intensified fears for further economic slowdown amid worries around britains surging inflation and declining economy sterling recorded its biggest weekly fall against the us dollar since september 2020 on friday by 1105 gmt it was down 03 at 11798 after briefly falling to 11785 its lowest level since july 14 against a weakening euro sterling held at 8482 pence edging 01 higher on the day after falling to a near fourweek low against the single currency on aug 19 the weak uk growth outlook continues to weigh on the pound news that ofgem is set to announce on friday that uk average annual household energy bills are likely to rise to more than 3500 pounds 412860 reinforces the headwinds facing consumers said jane foley head of fx strategy at rabobank in london britains cap on domestic energy prices is expected to rise to over 4200 pounds a year in january up 230 on the year before due to soaring wholesale costs and changes in the way the cap is set analysts said in august read more strikes over pay at felixstowe the uk’s largest container port highlighted issues surrounding the cost of living crisis and threatens to worsen the supply chain issues for uk companies foley added felixstowe staff became the latest workers to strike in britain as unions demand higher wages for members read more the squeeze on household incomes has already led to strikes by the likes of rail and bus workers demanding higher pay rises money markets are pricing in another 50 basis point rate rise from the bank of england next month as the central bank seeks to smother surging inflation at 101 in july irpr an economist at us bank citi said on monday british consumer price inflation is set to peak at 18  nine times the boes target  in early 2023 benjamin nabarro raised his forecast once again in the light of the latest jump in energy prices consumer price inflation was last above 18 in 1976 read more in its august meeting the boe raised its benchmark interest rate to 175 from 125 the sixth hike since late 2021 and the biggest in 27 years it warned of a recession by the end of the year that could last until 2024 official data also showed britain borrowed more than expected in july underscoring the challenge facing the countrys next prime minister over how to provide more support to consumers read more the pound has weakened more than 3 in august against a strengthening dollar which has been supported by safehaven flows the uk currency is one of the worst performers among g10 currencies this year