Rachel Reeves came under fire from the Tories after new figures showed inflation went up to its highest level in 10 months.
The rate of Consumer Prices Index inflation increased to 3% in January from 2.5% in December, the Office for National Statistics said.
Shadow chancellor Mel Stride accused the Chancellor of being “out of her depth”.
He said: “Today’s inflation figures mean further pain for family finances – and it’s thanks to the Labour Chancellor’s record tax hikes and inflation busting pay rises.
“Labour were warned that their tax spending and borrowing spree would drive up inflation.
“It means higher prices in the shops, and interest rates staying higher for longer, causing mortgage misery for millions.
“This Chancellor is out of her depth, and we’re all paying the price.”
It is the latest blow to the Chancellor, who has faced an ongoing backlash over tax rises in her Budget last October.
Ms Reeves said: “Getting more money in people’s pockets is my number one mission. Since the election we’ve seen year on year wages after inflation growing at their fastest rate – worth an extra £1,000 a year on average – but I know that millions of families are still struggling to make ends meet.
“That’s why we’re going further and faster to deliver economic growth. By taking on the blockers to get Britain building again, investing to rebuild our roads, rail and energy infrastructure and ripping up unnecessary regulation, we will kickstart growth, secure well paid jobs and get more pounds in pockets.”
It was higher than predicted by analysts, who had forecast a rate of around 2.8%.
ONS chief economist Grant Fitzner said: “Inflation increased sharply this month to its highest annual rate since March last year.
“The rise was driven by air fares not falling as much as we usually see at this time of year, partly impacted by the timing of flights over Christmas and New Year. This was the weakest January dip since 2020.
“After falling this time last year, the cost of food and non-alcoholic drinks increased, particularly meat, bread and cereals.”
