Middle East war ‘could wipe out 75% of chancellor’s budget headroom’; UK inflation climbs to 3.3% – business live

Oil prices rise again closer to $100 a barrel as strait of Hormuz remains closed; EU energy commissioner warns oil price crisis could last months or years even if there is peaceHere’s more reaction to the rise in UK inflation to 3.3%.Sharon Graham, general secretary of the Unite union, said:Today’s uptick in inflation looks like it is just the beginning. Before the war in Iran, workers were already forecast to get poorer. The outlook is now looking increasingly bleak.Workers must not pay the price yet again, for a crisis not of their making. As a minimum the government must take decisive action on soaring energy bills.Households are feeling the pain from Trump’s illegal war. Big rises in petrol prices are pushing up inflation and shockwaves from the war are putting recent improvements in growth under threat.But the Bank of England must remain focused on cutting rates as soon as possible. Coupled with Trumpflation, higher interest rates would increase the pressure on already stretched families and businesses. But lowering rates would provide vital support for economic growth, which is an important part of the Bank’s remit too. Continue reading...