The UK economy is "worryingly reminiscent of the 1970s" the Liberal Democrats have said.
The comments come as consumer inflation hits its fastest rate since tests began in 1997.
The consumer price index was up three per cent in May to 3.3 per cent from the previous month and the retail price index rose to 4.3 per cent.
Liberal Democrat economics spokesman Vince Cable said the Bank of England had backed itself in to a corner with no room to manoeuvre.
"We now have a situation worryingly reminiscent of the 1970s, with unemployment and inflation both rising, and growth falling," Mr Cable argued.
"The reality is that Gordon Brown's government has spent the last ten years pursuing economic growth built on little more than cheap credit.
"Now that economic times are harder and people are struggling with debt, the wheels are coming off the economy."