Burnham vows to help Brits through 'really hard' times as inflation rises amid Iran war
Inflation hit 2.9% in July, up from 2.6% in June and the highest level since March
Andy Burnham has vowed to do all he can to help Brits through "really hard times" as UK inflation rose to 2.9% in the 12 months to July.
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The Office for National Statistics [ONS] figures compare to the rate of 2.6% announced last month for the year to June, with its rise attributed to the ongoing impacts of the Middle East war.
Experts are also predicting more energy bill misery ahead for the winter months, with a further 4% rise when the next quarterly cap for October to December is announced on August 26, according to Cornwall Insight analysts.
Speaking in Newcastle, Mr Burnham said: "We can’t control though what is going on in the Middle East, and the effect of the conflict there is now being felt in inflation here, and in other countries around the world.
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"But people can be sure that what I can do to help people, I will do, I realise these times are really hard, but already people can see a month into office I have done things that will make a difference."
Wednesday's figures follow a 13% rise in Ofgem's energy price cap last month
It follows a 13% hike in Ofgem’s energy price cap last month, which increased the average gas and electricity bill by £221 to £1,862 a year.
Deputy director for prices at the ONS, Mike Hardie, said: "Inflation rose in July, driven by a sharp increase in gas prices following this month’s change to the energy price cap.
"This was the largest rise in gas prices for almost four years.
"Other upward pressures included furniture prices falling by less than usual for this time of year, and also a smaller fall for clothing prices due to reduced discounting."
Crude oil has since rocketed back up above $90 a barrel as the war shows no sign of ending and the crucial Strait of Hormuz shipping route, through which a fifth of the world’s oil and gas supplies is normally carried, remains closed.
Chancellor John Healey said: "Iran war inflation continues to impact prices here at home, but Britain’s economy is resilient.
"We have cut VAT on electricity bills and capped bus fares at £2 – to give breathing space to those feeling the strain.
"There is more to do to restore hope and build a stronger economy where prosperity is shared more fairly across Britain."
Bogdan Toma, Partner and Head of UK Consumer Practice at McKinsey & Company, said: "We shouldn’t see July’s print as a barometer for the rest of the year.
"With many of the UK's crop output constrained by extreme weather and continued supply chain challenges, we could see increased price pressures on food and beverage prices into the Autumn."
With no signs of an end to the Iran war, experts are forecasting more cost-of-living pressures ahead, with some suggesting inflation could peak at 3.5% before the end of the year as energy and fuel prices surge.
Matt Swannell, chief economic adviser at the Item Club, said: "July’s uptick in inflation will mark the start of a sustained increase in inflationary pressures over the rest of the year."
The Office for National Statistics said the steep rise in the July to September energy cap was driven by the biggest rise in gas prices for almost four years.