Temporary inflation slowdown set to boost Burnham

Inflation in the UK is expected to have eased in June, dropping from 2.8% to 2.6%, providing a temporary boost for incoming Prime Minister Andy Burnham. The decline is attributed to a sharp drop in petrol and diesel prices, driven by a US-Iran ceasefire deal that lowered oil prices. However, economists warn the slowdown is temporary, as the energy price cap has risen 13% to £1,862 from July, Middle East tensions have flared again, and food inflation could reach 10% later this year. Burnham's choice of chancellor, with Shabana Mahmood as a leading candidate, will be crucial for managing inflation and public spending pressures. Analysts expect inflation to peak around 3.5% later in 2024.