New data released on Thursday reveals that inflation in Greater Manchester rose to 4.2% in July, underlining the scale of the cost-of-living challenge facing Mayor Andy Burnham. The figure, compiled by the Office for National Statistics, is significantly higher than the national average of 3.8% for the same period.
Regional Inflation Disparity
The Greater Manchester inflation rate is the highest among the UK's combined authorities and represents a sharp increase from 3.5% in June. The data shows that price rises in the region are being driven primarily by higher costs for food, energy, and transport. According to the ONS, food prices in Greater Manchester rose by 9.1% year-on-year in July, compared to 8.5% nationally.
Burnham said the figures were a “stark reminder” of the pressures facing households in the region. “These numbers show that the cost-of-living crisis is hitting Greater Manchester harder than most of the country,” he said. “We need urgent action from the government to give us the tools to help people through this.”
Burnham's Call for Local Powers
The mayor has been a vocal advocate for greater devolution of economic powers to the region, arguing that local leaders are better placed to respond to local challenges. He has called for the ability to set a regional minimum wage, control over skills funding, and the power to cap energy prices for vulnerable households.
“We cannot keep relying on one-size-fits-all solutions from Whitehall,” Burnham said. “The cost of living is not the same in Manchester as it is in London or Cornwall. We need the flexibility to act.”
Impact on Households and Businesses
The rising inflation is already having a tangible impact on residents. Local food banks report a 20% increase in demand compared to the same period last year, according to the Greater Manchester Poverty Action group. Meanwhile, small businesses in the region are facing higher input costs, with the Federation of Small Businesses reporting that 62% of local firms have raised prices in the past three months.
Burnham is expected to raise the issue at the next meeting of the Combined Authority, where he will push for a joint letter to the Treasury calling for additional support. The mayor has also announced a summit of local business leaders and community groups to discuss potential solutions, including a proposed “cost-of-living taskforce” for the region.
