BORIS Johnson’s successor has been urged to “get their house in order” after inflation soared to 9.4 per cent – putting more pressure on squeezed household budgets.

The British Chambers of Commerce (BCC) said it was vital for the UK Government to demonstrate that “despite political upheaval” it can still manage the economy as the race to become the next prime minister ramps up.

Opponents of Boris Johnson claimed he was leading a “zombie government” at a time of national crisis.

Labour accused the Conservatives of overseeing “chaos, distraction and unfunded fantasy economics”.

The Tory leadership race will continue throughout the summer, with the Prime Minister remaining in office until his successor is elected in September.

Chancellor Nadhim Zahawi insisted “we are working alongside the Bank of England to bear down on inflation” and acknowledged the difficulties being caused by rising prices.

Official data showed that Consumer Prices Index (CPI) inflation rose to 9.4% in June, up from 9.1% in May and remaining at the highest level since February 1982.

BCC director of policy and public affairs Alex Veitch said: “It is vital that Government sends business a clear signal that despite political upheaval it can still take action on the economy.

“Beginning a long-promised review of the shortage occupations list to ease the incredibly tight labour market would be a start.

“The autumn budget must then be the main priority of the new prime minister and chancellor – a chance for them to reset, rethink and get their house in order.

“This inflationary surge sits alongside a poor economic outlook and unless the Government acts with urgency the chances of a recession will only increase.”

The Food and Drink Federation’s chief executive Karen Betts said “bold new policies” were needed from the next prime minister to “create the conditions for investment to boost productivity and competitiveness”.

The Tories’ opponents also demanded greater action to combat the impact of soaring prices.

Labour’s shadow chancellor, Rachel Reeves, said the Tory leadership race had delivered “chaos, distraction and unfunded fantasy economics”.

“Rising inflation may be pushing family finances to the brink, but the low wage spiral facing so many in Britain isn’t new,” she said.

“It’s the result of a decade of Tory mismanagement of our economy meaning living standards and real wages have failed to grow.

“We need more than sticking plasters to get us back on course – we need a stronger, and more secure economy.”

SNP Treasury spokesperson Alison Thewliss said: “The UK Government is distracted by internal power struggles within the Tory party, and ordinary people are bearing the brunt of their infighting.

“What we know about high inflation is that it doesn’t affect everyone equally. People at the lower end of the income scale are less likely to have had pay rises to match inflation, as well as being disproportionately affected by price increases.

"The Scottish Government is doing what it can with its limited powers such as uprating benefits and mitigating the benefit cap and bedroom tax but with 85% of social security spending reserved to Westminster, we’ve needed the UK government to act too and they haven’t.”

She added: “The SNP has repeatedly called for a targeted approach to support low-income households such as bringing in a Real Living Wage, matching the Scottish Child Payment and increasing Universal Credit and legacy benefit payments, as well as scrapping debt-inducing policies like the two-child cap and five-week wait. We’ve been ignored.

“Businesses are also impacted by soaring prices of raw materials and fuel, which will have a knock-on effect on consumer confidence. UK government inaction risks exacerbating poverty and creating a deep recession which could take years to recover from.”

Liberal Democrat Treasury spokeswoman Sarah Olney said: “Britain now has a zombie government in the middle of a cost-of-living crisis.

“The country can’t wait any longer for this Conservative party to play out their horror show leadership contest.”

There have been widespread reports of a rift between the Government and the Bank of England over tackling inflation.

Foreign Secretary and Tory leadership contender Liz Truss has criticised the Bank’s monetary policy and suggested she would “look again” at its mandate to make sure it is tough enough on inflation.

Bank of England governor Andrew Bailey has suggested a 50 basis percentage point rise in the interest rate – which would take it from 1.25% to 1.75% – will be one of the options on the table as it looks to “act forcefully” on inflation.

Chief Secretary to the Treasury Simon Clarke, a Truss supporter, has denied suggestions that he or the Government have been putting pressure on the Bank of England.

“I most certainly wasn’t,” he said.

Mr Clarke told ITV’s Good Morning Britain he respects the long-standing independence of the Bank of England.

“I think it’s imperative we take action to mitigate inflation, and I think the Bank understands that.

“I think there’s absolutely no question that we, as a Government, need to play our role in conjunction with the Bank in maintaining wider pay and spending discipline, but they do have a vitally important role to play and interest rates are a critical lever in that fight.

“The issue, of course, is how and when to best deploy them, and I absolutely leave that to the independent Bank to determine.”