The government suffered a big blow today as new figures showed the cost of living went up by half a percent to 2.7 per cent between September and October.
The hike in university tuition fees and increasing household food costs are being blamed.
Watch Economics Editor Richard Edgar's report:
Read more in Richard Edgar's blog.
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A backbench revolt over proposals to ease purdah restrictions on the EU referendum has led to a government climb down.
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