PERSISTENTLY high inflation rates will prolong the cost-of-living crisis and stifle economic recovery, the TUC warned today.

According to the latest Office for National Statistics figures, inflation fell by only 0.1 percentage points to 3.1 per cent in August, as the impact of last year’s “eat out to help out” scheme dropped out of the calculation rate.

But petrol prices hit their highest level in eight years, while the cost of food, drink, second-hand cars and air travel continued to increase.