Burnham announced that 'difficult decisions' will be made in the budget; inflation rose to 3.1%

Andy Burnham indicated that 'difficult decisions' need to be made in the upcoming budget to be presented next month. The rising energy prices due to the war in Iran have pushed inflation in the United Kingdom above 3%, creating negative impacts on living standards. According to official data, inflation rose from 2.9% in July to 3.1% in August. This situation is putting pressure on the government to cope with the effects of the war on global financial markets. The Prime Minister stated that the budget to be presented on October 28 will take into account investors' concerns about public finances. "We will make difficult decisions to keep the economy on track. This is a challenging period, especially considering the difficulties posed by the situation in the Middle East," he said, emphasizing that they will not take risks regarding citizens' living standards. The Bank of England will convene to make a decision regarding interest rates in the face of rising inflation pressures. The current inflation rate being significantly above the 2% target has increased expectations of an interest rate hike in the markets. Economists point out that while the labor market is cooling, core inflation remains under control. However, it is anticipated that inflation could rise to around 4% due to the impact of conflicts in the Middle East. The increase in consumer prices is putting pressure on the Bank of England to raise interest rates. Recently, diesel prices increased by 23%, contributing to inflation. In the budget to be announced in October, the government is expected to take measures to ease the burden on households. Experts indicate that the government will struggle to achieve growth targets with limited budgetary resources in the face of rising living costs.