The UK inflation rate rose to 4% in January, which is double the government's target and up from 3.7% the previous month.
CPI inflation remained at 3.1% in September but the figure is still well above government targets.
UK GDP rose by 1.2% in Q2 as previously estimated, representing the biggest increase since the first quarter of 2001.
UK inflation dropped marginally to 3.1% in July but remains well above the Government's 2% target.
George Osborne and Vince Cable fear the rationing of lending to small firms could reverse the UK's economic recovery.
The consumer price index (CPI) of inflation eased in May to 3.4%, down from 3.7% in April, according to the Office for National Statistics (ONS).
UK manufacturing performance took an unexpected knock in April according to official data, adding to fears Britain's economic recovery is much weaker than previously thought.
The Consumer Prices Index (CPI) hit a 17-month high of 3.7% in April, forcing Bank of England governor Mervyn King to write to new Chancellor George Osborne to explain why.
British factory production surged ahead at a rate five times faster than expected in March as the weak pound helped revitalise Britain's export trade.
The UK's employment rate fell 0.3% between Q4 2009 and Q1 of 2010, according to figures released last week by the ONS.