𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Labour was accused of making the public pay for “mad policies” after inflation rose. The Office for National Statistics (ONS) said the Consumer Prices Index (CPI) inflation increased to 3.1% in August, compared with 2.9% in July. And Conservatives pinned the blame for higher prices on tax rises, including an increase in National Insurance paid by employers, and Labour’s determination to switch to “net zero” energy.

Andrew Griffith, the Shadow Chancellor, said: “Inflation is now at 3.1%, meaning that every family is paying the price for Labour’s choices. Labour’s jobs tax and employment red tape are being passed on to consumers in the weekly shop, and their mad energy policies are pushing up costs and leaving Brits exposed. In difficult times, we need a serious government with a plan, not amateurs with a bunch of pet projects.” Business leaders also urged the Government to get inflation down. Harvir Dhillon, Lead Economist at the British Retail Consortium, said: “Tackling the cost of living is a top priority and retailers continue to do all they can to hold prices down. But until fiscal conditions improve, they will be fighting with one hand tied behind their back.

“The Autumn Budget is a chance to reset and reduce the cost pressures building up across the industry. Business Rates are perhaps the most significant of these, with retailers paying a disproportionate share of the total rates bill.”

Union leaders also called on Chancellor John Healey to act. Unite general secretary Sharon Graham said: “After a decade that has seen prices rise by 40 per cent, workers are sick of paying for crises they did not cause. Energy bills are set to be the highest they’ve been in three years, while the privatised profiteers rake in billions. Mortgage rates are spiking while the banks make money hand over fist.

“The government needs to step in. It can start by unfreezing the tax thresholds to put more money in workers’ pockets. At the same time, take back energy profits to subsidise household and industrial bills.”

Economists predict inflation will continue to rise over the coming months as ongoing pressure from the conflict in the Middle East pushes up the cost of living further.

ONS chief economist Grant Fitzner said: “Sharp price rises for petrol and diesel pushed inflation up again in August.

“Higher airfares, particularly for long-haul journeys, also contributed to the increase.”

Motor fuels contributed significantly to the rise in inflation, with the average price of petrol rising by 9.1 pence per litre between July and August to 161.3 pence per litre.

The price of diesel rose by 14.2 pence per litre to an average of 181.8 pence per litre for the month.

The jump in fuel costs highlights the early impact of the breakdown of the US-Iran ceasefire in July, which led to a fresh uptick in oil and gas prices.