The UK's annual rate of inflation has hit an annual 4.4% rise - the highest since the new CPI index was introduced in 1997. But looking deeper into the figures, food inflation is running at a massive 13.7%. Meanwhile, the older measure of inflation, the RPI (more commonly used in pay negotiations) hit 5%.
The Bank of England, charged by Gordon Brown to manage inflation, will be under further pressure to increase interest rates to deal with inflationary pressures. However, they are acutely aware that a hike in interest rates will only serve to put greater downward pressure on the economy, forcing it further into a recession.
Mark Garnier, Wyre Forest's Conservative Parliamentary Spokesman, said: "Families across Wyre Forest will be dismayed at these figures. These figures affect lowest paid the most, with a larger proportion of their budget spent on food. But the prospect of a hike in interest rates, forcing up the cost of mortgages and credit card debts, will put even more pressure on hard working families.
"Gordon Brown's reputation as the prudent chancellor lies in tatters. The strong economy he inherited from Ken Clarke in 1997 has turned to dust. Gordon Brown failed to put money aside in the good times and now working families are paying the price. A prudent Chancellor would have prepared for the unexpected and been able to deal with the rise in commodity prices."
Recent pay awards to public sector workers mean they receive a real decrease in pay after inflation is taken into account.