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 Britain39;s surging inflation and declining economy, sterling recorded its biggest weekly fall against the U.S. dollar since September 2020 on Friday.

By 1105 GMT, it was down 0.3 at 1.1798 after briefly falling to 1.1785, its lowest level since July 14.

Against a weakening euro, sterling held at 84.82 pence, edging 0.1 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 3,500 pounds 4,128.60 reinforces the headwinds facing consumers, said Jane Foley, head of FX strategy at Rabobank in London.

Britain39;s cap on domestic energy prices is expected to rise to over 4,200 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.

Strikes over pay at Felixstowe, the UKs largest container port, highlighted issues surrounding the cost of living crisis and threatens to worsen the supply chain issues for UK companies, Foley added.

SUMMER OF STRIKES

Felixstowe staff became the latest workers to strike in…