Burnham Vows to Tackle Inflation Amid Fuel Price Crisis

UK Prime Minister Andy Burnham has acknowledged that inflation in Britain is rising and has pledged to take 'difficult decisions' to keep the economy on track. In a statement, he said that the government won't take risks with people's living standards, despite the pressure from higher fuel prices caused by the Middle East war.

The Consumer Prices Index rose 3.1 percent in the 12 months to August, up from 2.9 percent the previous month, according to the Office for National Statistics. This increase is in line with analysts' expectations and puts pressure on Burnham and his finance minister John Healey to ease the cost of living for households in the government's budget update next month.

Healey said that 'the war in the Middle East is impacting on inflation worldwide, not just here at home. In our bills, our weekly shop and at the petrol pumps'. The UK economy is struggling for growth, and experts predict that persistently high consumer prices will continue to climb until the end of the year.

Richard Carter, head of fixed interest research at Quilter Cheviot, said 'with the situation in the Middle East looking increasingly fraught, the expectation is that inflation will continue to climb until the end of the year at a minimum'. He added that for the government, today's figures are 'a kick in the teeth' for an administration that wants to make easing the cost of living its central mission.