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Inflation accelerated to 3% in January, the highest level in 10 months, in part due to the introduction of VAT on private school fees.
Plane fares and rising food costs also helped push inflation higher rate of Consumer Prices Index (CPI) inflation rose to 3% in January, the Office for National Statistics (ONS) said.
It was higher than predicted by analysts, who had forecast a rate of around 2.8%.
The rate in December had stood at 2.5% after a surprise drop.
ONS chief economist Grant Fitzner said: “Inflation increased sharply this month to its highest annual rate since March last year.
“The rise was driven by air fares 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.
“After falling this time last year, the cost of food and non-alcoholic drinks increased, particularly meat, bread and cereals.”
Rachel Reeves said her “number one mission” was getting “more pounds in pockets” following the ONS announcement.
The chancellor said: “Getting more money in people’s pockets is my number one mission. 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.
“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.”
The Government has “a long way to go in turning round the economy,” the policing minister said after official figures suggested inflation rose to 3% last month.
Dame Diana Johnson insisted were a “number of factors involved” in inflation rising, including increased global energy prices.
She told Times Radio: “We’ve had 14 years economic stagnation, and in seven months we’re not going to turn around the economy that quickly.
“I think it’s quite clear there are a number of factors involved in why the inflation rate has gone up, and I’m told particularly part of that is around energy prices and some of the rising global prices for gas.”
She added: “We’ve obviously got a long way to go in turning round the economy.”
It was put to Dame Diana that Labour’s move to end the VAT exemption for private schools had been blamed in part for the rise.
She said: “I think you have to put it into context. We’ve seen three reductions in interest rates over the time that Labour’s been in power. Wages are growing at the fastest rate for three years, so there is positive news there.
“But I accept that the announcement in the last few minutes is one that we’ve got to work on.”
More follows…
