Inflation is back, but Sunak is determined to take money out of our pockets

Inflation is back, but Sunak is determined to take money out of our pockets

Analysis: Britain faces a cut in universal credit, a public sector pay freeze and a rise in national insurance contributions

Prices are climbing in the shops and consumers face an autumn crunch. Official figures show inflation rose at the fastest rate in a decade in August, as the impact of Covid-19 and Brexit drives up the cost of living.

Surpassing the forecasts of City economists, the 1.2 percentage point increase in the consumer price index was the largest since Gordon Brown handed the Bank of England independence to manage inflation in 1997. At 3.2%, the CPI is now the highest since March 2012.