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 an interim US-Iran ceasefire deal that lowered oil prices. However, economists warn the slowdown is temporary, as the energy price cap has since risen by 13% to £1,862 per year, and Middle East tensions have flared again. Food inflation could jump to 10% later this year. Burnham's choice of chancellor, with Shabana Mahmood as a leading candidate, will be critical for long-term inflation management, as any signals of increased public spending could pressure prices. The June CPI data will be released on Wednesday.
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