MINISTERS must stay focused on the cost-of-living crisis, the TUC said today as official figures showed inflation rising.

The rate of increase ticked up to 3.4 per cent, a rise of 0.2, bad news for Chancellor Rachel Reeves a day after figures showed unemployment rising too.

TUC general secretary Paul Nowak said the statistics proved that “ministers must stay laser-focused on cutting costs and supporting family incomes.  

“And the Bank of England must keep going this year with more interest rate cuts in the months ahead.

“More rate cuts would help families spend, businesses invest, and make sure Britain finally moves on from the living standards crisis that’s kept us stuck in the doldrums for too long.”

Bank of England boss Andrew Bailey believes inflation will fall to around the 2 per cent target later this year, suggesting the TUC may get its wish.

Chancellor Rachel Reeves claimed that her “number one focus is to cut the cost of living.

She said: “At the Budget I announced £150 off energy bills, a freeze to rail fares for the first time in 30 years, a freeze to prescription charges for the second year running, and an increase to the national minimum and living wage.

“Money off bills and into the pockets of working people is my choice. There’s more to do, but this is the year that Britain turns a corner.”

The Office for National Statistics (ONS) said increased tobacco, alcohol and airfare costs were the main drivers of the inflation hike.