The Chancellor is on a collision course with bond markets over plans to change how inflation is calculated.
Incoming Bank of England governor Mark Carney has suggested struggling economies dump inflation targeting in order to kick-start growth.
The UK's main inflation rate has jumped sharply to 2.7% in October, having fallen to a 34-month low of 2.2% in September.
The UK's main inflation rate has fallen to 2.2% in September from 2.5% in August, dropping to its lowest level for three years.
The UK's main inflation rate fell back towards the 2% target in August, reversing a surprise jump the previous month.
UK CPI inflation has risen to 2.6% in July, up from 2.4% in June, surprising economists who had expected a fall to 2.3%.
China's inflation level fell to a 30-month low of 1.8% in July, continuing to tumble as the global slowdown takes hold.
UK inflation has dropped to its lowest level since November 2009 after a shock fall to 2.4%.