RACHEL Reeves facing huge under pressure to help households with the cost of living as food prices went up.
The Chancellor vowed to do more to “bring down prices” in her Budget next week as the overall rate of inflation dipped slightly to 3.6 per cent.
But food costs were up from 4.5 per cent to 4.9 per cent in the year to October driven by rising prices in bread, sugar and chocolate.
Shadow Business Secretary Andrew Griffith said: “Food and drink inflation is the stand out number.
“Higher National Insurance, business rates and employment costs all contributed to this – precisely as business warned the Chancellor. Now British families are paying the price.”
The main rate hit a four-month low as it fell from 3.8 per cent to 3.6 per cent which may trigger the Bank of England to lower interest rates next month.
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There was a slowdown in the cost of energy, air travel and hotels which helped offset a jump in prices for petrol, kitchen appliances in the overall rate.
The Chancellor said yesterday she was planning “targeted action” with her tax and spend plans to ease the cost of living crisis as she recognised rising prices were a “big burden” on families.
She side-stepped a question on whether increases to employer national insurance contributions helped push up food prices.
She replied: “Food prices fell last month and they have risen this month. But I do recognise that there’s more that we need to do to tackle the cost-of-living challenges.
“And that’s why one of the three priorities in my Budget next week is to tackle the cost of living, as well as to cut NHS waiting lists and cut Government debt.”
