Getting a grip of inflation was never going to be an easy task for the Chancellor but the storm clouds on the horizon could do irreparable damage to the Government.

The International Monetary Fund’s (IMF) latest outlook report makes for grim reading. It says inflation in Britain is set to surge to the highest in the G7 in 2025 and 2026. The increases will also be more sharp than expected in both years compared with previous predictions from July.

Even more concerning are the figures showing grocery price inflation nudging back up to 5.2 per cent. Inflation was up from 4.9 per cent last month to match July’s figure, according to market research firm Worldpanel by Numerator.

This really does put the Government in a dangerous position. Especially with unemployment rising to the highest level in four years.

placeholder image — A shopping basket containing groceries.

Tackling food price inflation needs to be the Government’s immediate priority. It affects everyone and there’s a growing sense amongst the electorate that Labour won’t ever be able to get a handle on the situation. Against the backdrop of policy designed to make life more difficult for farmers, there are serious questions about how seriously the Government is taking food security.

The reality is that the so-called ‘squeezed middle’ has nowhere to go. While in the past families could switch to discounters and ditching branded products, even these choices are leaving little wriggle room in household budgets. Further price increases could well leave them imperilled. And then there’s those who were already below the breadline. For them the situation looks even more grim.

However, this isn’t just an issue for the Government. The big supermarkets continue to rake in profits despite the challenges that consumers are facing.