Inflation rose to 3.1% in November, the highest in nearly six years, as the squeeze on households continued.
The most recent data shows that average weekly wages are growing at just 2.2%.
Mark Carney, the governor of the Bank of England, will now have to write a letter to Chancellor Philip Hammond explaining how the Bank intends to bring inflation back to its 2% target.
Mr Carney has to write a letter to the chancellor if the Consumer Prices Index (CPI) inflation rate is above 3% or below 1%.
In November, the Bank of England raised its key interest rate for the first time in more than a decade from 0.25% to 0.5%.