UK inflation has jumped to 3%, up from 2.5%—the steepest increase since March 2024—marking another tough moment for Chancellor Rachel Reeves as she struggles to steady the economy.
According to the Office for National Statistics (ONS), rising food prices, expensive plane fares, and Labour’s controversial private school tax hike all contributed to the unexpected inflation rise. Economists had anticipated an increase, but not quite this sharp.
Related: Rachel Reeves to Unleash Massive Cuts After Slashing a Staggering £9.9 Billion
Related: Blow to Rachel Reeves as Supreme Court Shuts Down Her Move on Car Finance Payouts
Since her October Budget, Reeves has been facing mounting criticism, and today’s inflation figures have only added fuel to the fire. Shadow Chancellor Mel Stride didn’t hold back, slamming Labour’s tax and spending policies for making things worse.
“Today’s inflation figures mean further pain for family finances – and it’s thanks to the Labour Chancellor’s record tax hikes and inflation-busting pay rises,” Stride said. “Labour were warned that their tax spending and borrowing spree would drive up inflation. It means higher prices in the shops, and interest rates staying higher for longer, causing mortgage misery for millions. This Chancellor is out of her depth, and we’re all paying the price.”
ONS Chief Economist Grant Fitzner explained that a big part of the inflation spike was due to airfares not dropping as much as usual after Christmas and New Year. “The rise was driven by airfares not falling as much as we usually see at this time of year, partly impacted by the timing of flights over Christmas and New Year. This was the weakest January dip since 2020,” he said.
In response, Reeves tried to reassure the public, insisting that tackling the cost of living remains her top priority. “Getting more money in people’s pockets is my number one mission,” she said. “Since the election, we’ve seen year-on-year wages after inflation growing at their fastest rate – worth an extra £1,000 a year on average – but I know that millions of families are still struggling to make ends meet.
More: GB News Chaos as Guest Explodes in Fiery On-Air Russia Rant—Host Forced to Intervene
More: MSPs Slam ‘Catastrophic’ National Insurance Hike in Fierce UK Government Rebellion
“That’s why we’re going further and faster to deliver economic growth. By taking on the blockers to get Britain building again, investing to rebuild our roads, rail and energy infrastructure and ripping up unnecessary regulation, we will kickstart growth, secure well-paid jobs and get more pounds in pockets.”
Despite Reeves’ optimism, today’s inflation figures paint a worrying picture for households already struggling with high living costs. With interest rates unlikely to come down anytime soon, mortgage holders and renters could continue to feel the squeeze, and Labour’s economic policies are under increasing scrutiny. Whether Reeves can turn things around remains to be seen, but for now, families are feeling the pinch, and the pressure is mounting.
What’s Next?
- Migrants Eye UK as Germany Plans New Deportation Centre on Polish Border
- Brit Mum Faces Arrest After Heart Attack Leaves Her Trapped in Moroccan Hospital
- Young Father of Two Faces Devastating Prognosis as He Battles Aggressive Brain Tumour
- Atlantic Storm to Unleash 8 Inches of Snow and a Deluge of Torrential Rain
- Liz Truss Blasts ‘Deeply Rotten’ British State in Scathing Attack
