Rising inflation underlines scale of Andy Burnham’s cost of living challenge

<p>PM’s plan to shield households from more pressure risks being overwhelmed by wider price rises</p><ul><li><p><a href="https://www.theguardian.com/business/2026/aug/19/uk-inflation-rise-iran-war-energy-consumer-prices-index-interest-rates">UK inflation rises to 2.9%</a></p></li><li><p><a href="https://www.theguardian.com/business/live/2026/aug/19/uk-inflation-increases-in-july-driven-by-a-surge-in-gas-costs-oil-prices-rise-again-business-live">Business live – latest updates</a></p></li></ul><p>July’s increase in inflation, <a href="https://www.theguardian.com/business/2026/aug/19/uk-inflation-rise-iran-war-energy-consumer-prices-index-interest-rates">to 2.9%</a>, is likely to be the first of several, underlining the challenge facing Andy Burnham in shielding consumers from a fresh cost of living squeeze this autumn.</p><p>Rising energy bills, as an increase in Ofgem’s quarterly price cap came into force, were the main driver of the jump in inflation, from 2.6% in June. That was partly offset by cheaper fuel prices – the knock-on effect of hostilities easing in the Middle East, after Donald Trump hailed his “memorandum of understanding” with Iran in June.</p> <a href="https://www.theguardian.com/business/2026/aug/19/rising-inflation-underlines-scale-of-andy-burnham-cost-of-living-challenge">Continue reading...</a>