Rachel Reeves handed brutal warning as disastrous new inflation figures published

Rachel Reeves has been slammed over disastrous new inflation figures that prove the cost of living crisis for working Britons has worsened yet again on her watch. This morning the Office for National Statistics confirmed prices rose by 3.8% in the 12 months to July, up from 3.6% in June.

Ms Reeves inherited an inflation rate of just 2% from the Tories, meaning she has nearly doubled the rate at which prices are rising since entering No. 11 Downing Street. Responding to this morning's disastrous news, Shadow Chancellor Mel Stride blasted: "This morning’s news that inflation has risen even higher than the 2 per cent target is deeply worrying for families. Labour’s choices to tax jobs and ramp up borrowing are pushing up costs and stoking inflation – making everyday essentials more expensive. And with leading economists warning that the Chancellor has blown a colossal black hole in the public finances, families and businesses are bracing for yet more pain come the Autumn Budget."

“Families are paying the price for Rachel Reeves’ economic mismanagement. Britain can’t afford Labour.”

Tory Shadow Business Secretary Andrew Griffiths added: "The fault for this inflation lies squarely in Downing Street. Labour’s jobs tax, rates hikes and minimum wage rises have all fed through to higher prices - just as predicted. This should give the Chancellor real pause for thought before inflicting any more tax rises this autumn.”

Ms Reeves insisted things are better now than compared to the height of the cost of living crisis following lockdown, when inflation hit 11%, though conceded "there's more to do to ease the cost of living."

"That’s why we’ve raised the minimum wage, extended the £3 bus fare cap, expanded free school meals to over half a million more children, and are rolling out free breakfast clubs for every child in the country. Through our Plan for Change we’re going further and faster to put more money in people's pockets.”

The Liberal Democrats branded this morning's news as "grim", accusing Labour of failing to offer "a vision for the economy or a strategy to bring down the cost of living."

Commenting on today's rise, ONS chief Grant Fitzner explained the grim news was largely driven by a rise in air fairs, petrol and food.

He pointed to coffee, fresh orange juice, meat and chocolate seeing the biggest price rises in people's weekly shop.

The Government has an inflation target of 2%, which the Bank of England is mandated to help meet with its powers over interest rates.

Britain's so-called "sticky" inflation has been credited with not allowing the Bank to cut interests rates as quickly as they would have otherwise been.

The central bank has forecast that inflation will hit 4% next month, which would mean it has doubled on Ms Reeves' watch.

Today's data will also prove bad news for rail commuters, who will now be hit by a whopping 5.8% rise in the cost of their tickets next year.

The Tories' Transport spokesman Richard Holden warned: "These fare rises are a direct result of Labour’s disastrous economic mismanagement. Labour’s capitulation to the unions gave train drivers with a 15 per cent, no-strings pay deal, forcing up prices, while Labour turn a blind eye to fare-dodging and rising violence on the railways."