Tough route also awaits Rachel Reeves as households reel from sharp increase in living costs

• UK inflation jumps to 3%
• Business live – latest updates

Andrew Bailey had warned there would be a bump in the road. But after inflation jumped by more than expected to 3% in January, the Bank of England governor could be in for a rockier ride than anticipated.

For the chancellor, Rachel Reeves, too, it will be a tough road to travel having promised to achieve economic growth that can be “felt in people’s pockets” – amid the accusation Labour is leaving those pockets feeling lighter, not heavier.