Central Devon MP Mel Stride has expressed his concern over official statistics showing that inflation has increased from 2.3% compared to the previous 1.7%.
It was expected for inflation to creep up, partly due to a rise in energy bills after the energy cap went up on October 1, but 2.3% in October (calculated against what prices were a year ago) is higher than economists had expected.
If inflation continues to rise, Labour will be forced to defend itself against Tory claims that government policy is at least partly responsible.
Mel Stride, Conservative MP for Central Devon and Shadow Chancellor, said: “Inflation is running ahead of expectations and above target.
“While some credit must be given to international energy markets, Labour has agreed above-inflation pay deals – with no increased productivity requirements – and announced almost £70bn of extra spending each year.
“Official forecasts state that inflation figures are not expected to improve because Labour’s Budget will push up inflation and mortgage rates.”
Prices are rising much slower than they were in the immediate aftermath of the outbreak of war in Ukraine but annual gas and electricity bills for a typical household went up by £149 last month.
Inflation has fallen significantly since it hit 11.1% in October 2022, which was the highest rate for 40 years.
However, that doesn't mean prices are falling – just that they are rising less quickly.
Earlier this month, the Bank of England cut interest rates from 5% to 4.75% due to inflation falling below the bank’s target of 2% for the first time since April 2021, after the unprecedented economic damage caused by the war in Ukraine and the Covid pandemic.
However, the bank warned that interest rates would not continue to fall at a steady rate unless inflation remained close to the 2% target and raised concerns about spending commitments announced in Rachel Reeves’ Budget package.