Britain's inflation rate has unexpectedly climbed to 4%, triggering fresh economic alarm and putting Labour leader Sir Keir Starmer on direct collision course with the government over next month's Spring Budget.
The Office for National Statistics confirmed the concerning rise in the Consumer Prices Index for December, dealing a significant blow to Rishi Sunak's pledge to halve inflation and raising fears about prolonged cost-of-living pressures for households.
Starmer's stark warning
Sir Keir Starmer immediately labelled the figures "deeply concerning," stating they demonstrate the government's "failure to secure our economy." The Labour leader is now demanding urgent action in the upcoming budget to address what he calls "the Tories' economic mess."
"These figures will bring anxiety to families already struggling with mortgage payments, food bills and energy costs," Starmer declared. "The Prime Minister made halving inflation his flagship promise - it's a promise he has now broken."
Budget battle lines drawn
The inflation surge comes at a critical political moment, with Chancellor Jeremy Hunt preparing to deliver his Spring Budget on 6 March. The disappointing figures have:
- Increased pressure on the Bank of England to maintain higher interest rates
- Undermined government claims of economic progress
- Given Labour substantial ammunition for their economic arguments
- Raised concerns about further mortgage rate increases
Economic fallout spreads
Market analysts expressed surprise at the inflation persistence, with many expecting a continued decline. The rise was partly driven by increased alcohol and tobacco prices ahead of Christmas, alongside stubborn services inflation.
"This is the worst possible news for the government and the best possible news for Labour's economic narrative," noted one senior economist. "Starmer now has concrete evidence to challenge Sunak's economic competence just weeks before a crucial budget."
With the UK already in technical recession according to recent GDP figures, the inflation setback creates a perfect storm for the Conservatives as they attempt to regain economic credibility ahead of the next general election.
