00:00UK energy bills could jump 25% in January, according to Bloomberg Economics.
00:05That could add roughly £425 to a typical annual bill, pushing it to around £2,150.
00:12The timing is awkward for new Prime Minister Andy Burnham.
00:15One of his first moves in office was cutting taxes on energy bills,
00:19part of an effort to tackle Britain's cost-of-living crisis.
00:22But the forces driving bills higher are largely beyond his control.
00:25The war in Iran has sent wholesale gas and electricity prices soaring,
00:30overwhelming much of the government's relief.
00:32And it's not just energy bills.
00:35Bloomberg Economics says the shock could push UK inflation back above 4%.
00:39That's more than double the Bank of England's target.
00:42That could also make it harder for the bank to cut interest rates,
00:45keeping borrowing costs higher for longer.
00:47So while Burnham moved quickly to give households some relief,
00:50it seems like global energy markets may be taking it away just as fast.
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