Tories warn of ‘flashing red lights’ for UK economy as inflation creeps up to 2.2%
The July figure marked the first rise since December
TORIES yesterday warned of “flashing red lights” for the economy — as inflation crept up to 2.2 per cent.
Ex-Pensions Secretary Mel Stride took aim at Chancellor Rachel Reeves for agreeing big public sector pay rises while the cost of goods and services remained volatile.
The July figure, just above the Bank of England’s two per cent target, marked the first rise since December.
Leadership hopeful Mr Stride said the figure was “not a cause for alarm bells”.
But he added: “I think there are flashing red lights around the approach they’re taking.”
Chief Secretary to the Treasury Darren Jones insisted: “We are taking the tough decisions now to fix the foundations of our economy.”
It comes as a top Labour adviser warned that getting sick Brits back to work is the nation’s ‘biggest economic problem’.
Alan Milburn said finding jobs for those nearly three million people must be the “top priority” for PM Sir Keir Starmer if the country is to thrive.
Reversing the rocketing trend, the former health secretary added, was also the UK’s “biggest opportunity” as it would “grow the economy and reduce the welfare bill”.
It came as figures showed 9.41 million Brits — 22.2 per cent of the working age population — were economically inactive in the three months to June, up 350,000 on last year.