PRIME MINISTER Andy Burnham faced calls to bring energy companies under public control after he blamed the US-Israeli war on Iran for inflation surging to a four-month high today.

Unite led calls for profiteering fossil fuel firms to be brought to heel after official data showed consumer prices index inflation rose from 2.6 to 2.9 per cent in July.

It followed a 13 per cent hike in Ofgem’s energy price cap last month, which increased the average gas and electricity bill by £221 to £1,862 a year.

Experts have predicted a further 4 per cent rise in energy bills when the next quarterly cap for October to December is announced next week.

Unite general secretary Sharon Graham said: “Once again, the cost-of-living crisis is being driven by soaring energy prices. 

“We need common-sense solutions to this market madness — proper price caps and public control — to put pounds back in people’s pockets. 

“Tinkering around the edges of a broken system won’t cut it.”

The Office for National Statistics said the steep rise in the July to September energy cap was driven by the biggest rise in gas prices for almost four years.

Its inflation figures also showed the retail prices index rate of inflation rose from 3 to 3.2 per cent last month, setting the stage for a possible 4.2 per cent rise in regulated train fares in England next year.

With no signs of an end to the US-Israeli war on Iran, experts are forecasting inflation could peak at 3.5 per cent before the end of the year as energy and fuel prices surge.

End Fuel Poverty Coalition co-ordinator Simon Francis said: “Following more than £125 billion in UK industry profits since the energy crisis began, and with household energy debt now at record levels, the case for reforming who owns and controls our energy system is clear. 

“It is time to ensure that the energy system’s ownership delivers greater public benefit.

“This means greater public control of electricity networks, GB Energy equity stakes in new renewables and battery storage, a central wholesale buyer to cut out speculative trading, options for publicly owned suppliers at a devolved level and a presumption in favour of municipal or community ownership for new heat networks.

“But ultimately, any changes must only proceed if they translate into lower bills and a better system for the households who need it most.”

The data also showed private-sector pay growth slowed down to 2.8 per cent while household costs rose by 4.1 per cent between April and June.

A Your Party spokesperson said: “The government may point to average wages marginally outpacing inflation, but millions of workers will not recognise that picture. 

“Working people should not be expected to keep absorbing rising costs while energy companies, landlords and major corporations protect their profits. 

“A government serious about tackling the cost of living crisis would immediately raise the minimum wage to £15 an hour, urgently introduce rent controls and bring energy into public ownership to bring bills down.”

TUC general secretary Paul Nowak called for more government action to support households in the coming months, saying: “Ministers should start by introducing a permanent social tariff to cut energy bills for the majority of households — paid for by taxing banks’ enormous profits.

“While higher interest rates have meant mortgage misery and bigger bills for the rest of us, the big banks have been rolling in it. Taxing bank profits to cut bills is plain common sense.”

Speaking during a visit to north-east England, Mr Burnham said: “We can’t control what is going on in the Middle East, and the effect of the conflict there is now being felt in inflation here, and in other countries around the world.

“But people can be sure that what I can do to help people, I will do. I realise these times are really hard, but already people can see a month into office, I have done things that will make a difference.”

Chancellor John Healey had earlier said there was “more to do to restore hope and build a stronger economy” following the inflation data.