THE TORY COST OF LIVING CALAMITY

MISERY FOR FAMILIES AS BANK SET TO IMPOSE HIKE | Inflation & mortgage 'time bomb'

- GRAHAM HISCOTT and JOHN STEVENS

CRITICS yesterday slammed Rishi Sunak's Government, as the "living nightmare" of high inflation and soaring mortgage rates fuels mounting fears of a tidal wave of repossessions.

With another Bank of England rate hike predicted today sparking even more homes misery - the Tories were accused of being out of ideas and clueless about people's financial predicament.

Figures yesterday revealed no drop in living costs last month.

The consumer prices index measure of inflation stayed stuck at 8.7 per cent in May. Experts had predicted a fall. And the UK's debt mountain reached the highest levels since 1961.

Core inflation, which strips out things such as food and energy and is closely watched by the Bank of England, defied forecasts by rising to 7.1 per cent, its highest since 1992.

Food price inflation stood at 18.3 per cent, a slight easing.

Also up were everything from second-hand cars and computer games to air fares, package holidays and concerts - the last is thought to be affected by Beyonce's UK gigs. While average wages are rising, they are outstripped by inflation, resulting in a real-terms pay cut.

Millions of households are set to pay the price for what opponents say are failures by the Tories and the Bank of England to tackle inflation.

Economists have pencilled in a rate hike from 4.5 per cent to 4.75 per cent today with a leap straight to five per cent not ruled out.