Rachel Reeves blasted for 3.8% 'inflation spiral'

Sir Mel Stride has blasted Rachel Reeves's "inflation spiral" as the figure hit 3.8% for the third month in a row.

The Shadow Chancellor warned Ms Reeves's tax, spend and borrow "doom loop" has sent prices rocketing, causing "dire implications for ordinary families' finances".

Sir Mel said: "Inflation remains at almost double the Bank of England's two per cent target because of Rachel Reeves' decisions - pushing up the cost of living and punishing those Labour promised to protect. This financial year Labour have borrowed £100 billion because they do not have the backbone to reduce spending. Combined with her £25 billion Jobs Tax, Rachel Reeves is pushing inflation higher and higher.

"Starmer and Reeves do not have the backbone to sort this mess out. Only the Conservatives have the plan and the strong team to break the doom loop and ease the cost of living by delivering £47 billion in savings and bringing inflation under control - delivering a stronger economy."

The 3.8% is almost double the Bank of England's target of 2%.

Ms Reeves said:"I am not satisfied with these numbers. For too long, our economy has felt stuck, with people feeling like they are putting in more and getting less out.

"That needs to change. All of us in government are responsible for supporting the Bank of England in bringing inflation down. I am determined to ensure we support people struggling with higher bills and the cost of living challenges, deliver economic growth and build an economy that works for, and rewards, working people."

The rate of Consumer Prices Index (CPI) was 3.8% in September, remaining at the same level as both July and August, the Office for National Statistics said.

Economists had predicted a reading of 4% for the month.

Liberal Democrat Treasury spokeswoman Daisy Cooper said:

"The Government can't keep sitting on its hands - thoughts and prayers won't fix this.

"As families look on at the ever increasing costs of food bills, energy bills, children's school uniforms and more, the winter is looking very expensive and very bleak.

"Ministers need to roll up their sleeves and set out a proper plan to slash energy bills, tackle food prices by backing our farmers, cut red tape for business, and boost jobs by scrapping the damaging jobs tax."