Good Morning Britain halted for 'breaking news' – it's huge blow for Keir Starmer

Good Morning Britain interrupted the usual programme to announce some breaking news about the economy which will come as a huge blow to Keir Starmer and Rachel Reeves. Charlotte Hawkins made the announcement that inflation has increased to 3.6%.

She said: "We've got breaking news on the rate of inflation. We've just had the figures in and it has gone up to 3.6% in June from 3.4% in the previous month. That's according to the official figures released in the last few moments from the Office for National Statistics. It is a higher increase than was expected, and it does take us further away from the Bank of England's inflation target of 2%. The Chancellor says more needs to be done to get that figure down," she continued before passing to Louisa James outside Downing Street.

"That increases is higher than economists had predicted, and that is said to be down to the cost of transport, particularly fuel, core inflation, which excludes food and energy is also up now," she confirmed.

"For context, 3.6% is still much lower than the double figures we had a couple of years ago, and economists do expect inflation to start coming down towards the end of the year, beginning of next year.

"But 3.6% is still much higher than the target of 2.2% set by the Bank of England, and it is a reminder that the cost of living is still a very real challenge for many, including for this government."

This news will come as a further blow for Chancellor Rachel Reeves as she comes under mounting pressure over her handling of the economy.

Inflation had been expected to remain unchanged from the rate in May, where it had stayed for the previous two months.

Following the unexpected inflation jump, the value of the pound has now also risen, which further complicates the picture for the Bank of England at its next meeting on interest rates. The pound was up 0.2% versus the dollar at $1.34. It does remain flat against the Euro, however, which was worth 86.7p.

Last month, Rachel Reeves said she was "determined" to put more money in people's pockets. She said: “I know working people are still struggling with the cost of living.

“That is why we have already taken action by increasing the national minimum wage for three million workers, rolling out free breakfast clubs in every primary school and extending the £3 bus fare cap.

“But there is more to do and I’m determined we deliver on our Plan for Change to put more money into people’s pockets.”