UK Inflation Hits 2.9% on Energy Price Surge

Rising inflation in the UK has underlined the challenge facing Andy Burnham's government in shielding consumers from cost of living pressures. The consumer prices index (CPI) rose to 2.9% in July, driven mainly by increasing energy bills.

The jump was partly offset by lower fuel prices following Donald Trump's memorandum of understanding with Iran in June. However, fuel prices have risen again as hopes for a permanent end to the conflict fade.

Burnham's decision to cut VAT on electricity bills will help ease pressure on household budgets, but may be overwhelmed by wider price rises.