Inflation has risen for the first time in more than a year, official figures show, in a blow to Sir Keir Starmer after his first month in power.

The consumer prices index (CPI) rose by 2.2pc in July, up from 2pc in both May and June, according to the Office for National Statistics. This was less than the 2.3pc rise expected by analysts.

It is the first time CPI has risen since February 2023 after the Bank of England raised interest rates to 16-year highs to bring down inflation, which hit a peak of 11.1pc in October 2022 after a sharp rise in energy prices sparked by Russia’s invasion of Ukraine.

Rising inflation is unhelpful for the Prime Minister, as it erodes living standards at a time when he is warning the public his new Labour government will “have to do really tough things to move the country forward”.

Governor Andrew Bailey struck a cautious tone earlier this month after announcing the first cut in interest rates in four years from 5.25pc to 5pc after inflation dropped back to the Bank of England’s 2pc target.

Catherine Mann, a fellow member of the Monetary Policy Committee that sets interest rates, said this week that the UK should not be “seduced” into thinking inflation will stay low over the coming year.

The Bank of England has said it expects inflation to rise to about 2.75pc in the second half of this year, amid persistent price rises in the service sector and strong wage growth across the jobs market.

Inflation will then fall back over the subsequent years to 1.7pc in 2026, it predicted earlier this month, then down to 1.5pc in 2027.

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