THE Labour Government has been warned that the UK faces a cost-of-living emergency this winter unless it rolls out urgent financial support for households as inflation rises again amid surging fuel prices.
The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation increased to 3.1% in August, compared with 2.9% in July.
It was in line with predictions from economists and points to an upward trajectory for inflation since striking a 15-month low of 2.6% in June.
Economists are predicting that inflation will continue to rise over the coming months as continued pressure from the conflict in the Middle East pushes up the cost of living further.
SNP MP Kirsty Blackman has said the recent inflation figures are “bad news” for millions of hard-pressed households and represent “another broken promise from the Labour Government” as the party had promised to lower people’s bills.
“The Labour Party promised to cut the cost of living, but energy bills are £600 higher than promised, food and fuel prices are sky-high, mortgage rates are rising and the cost of living is soaring,” she said.
“Families were told a change of Prime Minister would offer ‘breathing space’ from rising costs but bills are higher, not lower, and the cost of living in the UK has got worse, not better.”
Blackman added: “With growing warnings the UK is facing a cost of living emergency this winter, the UK government must bring forward an urgent package of financial support to help people.
”Scotland is an energy-rich country with huge natural resources but under Westminster control we are paying some of the highest prices in Europe.
“The SNP will continue to deliver the best support anywhere in the UK, and demand the UK government does more, but this never-ending doom loop shows Brexit Britain is Broken and Scotland needs independence to build a better future.”
Motor fuels contributed significantly to the rise in inflation, after the average price of petrol rose by 9.1 pence per litre between July and August, to an average of 161.3 pence per litre.
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.
Elsewhere in the transport sector, the latest figures also showed a 6.2% increase in airfares for the month after an increase in the cost of long-haul flights.
Meanwhile, food and drink inflation remained steady at 1.3% despite warnings that it could be pushed higher by rising energy costs.
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.”
Responding to the figures on Wednesday, Chancellor John Healey said: “The war in the Middle East is impacting on inflation worldwide, not just here at home, in our bills, our weekly shop and at the petrol pumps.
“We have taken early action to help give families and businesses breathing space, by cutting tax on electricity bills, capping bus fares at £2 and lowering rates for pubs, social clubs and live music venues.
“Despite this serious global uncertainty, our UK economy is proving resilient, and our determination to deliver growth in every postcode continues.”
The data also showed that the Consumer Price Index including Housing (CPIH), the ONS’s preferred measure of inflation, rose to 3.3% for August from 3.1% last month.
Meanwhile, Retail Prices Index (RPI) inflation rose to 3.4% from 3.2% in July.
Thomas Pugh, chief economist at RSM UK, said: “The rise in inflation in August is just the start of a new upward trend as higher energy, food and memory chip prices continue to make their way through supply chains.
“We now see inflation peaking at almost 4% in early 2027, before gradually dropping back to 2% in 2028.”
