Rising Food And Energy Costs See Inflation Hit Highest Level For 30 Years

Wednesday, 19 January 2022 13:57

By Dominic Kureen @WriteOnDom

The higher than expected increase in the cost of living in December came ahead of further pressure from a likely energy price cap hike in the spring.

Inflation climbed to 5.4% last month, its highest rate since March 1992, as Britain's cost of living squeeze intensified, official figures show.

The consumer price index (CPI) measure of inflation, up from 5.1% in November, was higher than economists had expected - as food, furniture and clothing prices surged, as well as restaurant and hotel bills.

Food saw a year-on-year increase in prices at 4.2% - a rate that has not been higher since September 2013 - while for clothes, inflation was at a four-and-a-half-year high, according to the Office for National Statistics (ONS).

That added to continued pressure caused by energy bill hikes seen in October, fuel that have climbed to record levels, and a spike in demand for used cars - on average costing 28% more than in January - as chip shortages squeeze the supply of new vehicles.

Its latest figures come a day after ONS official data showed wage rises for UK workers are already being wiped out by the surge in prices, even before the latest uptick.

Further upward pressure on inflation is expected in April, when a new energy price cap could see bills for millions of households hiked by 50%.

More from Lifestyle

Five Of The Greatest Rollercoasters In The World

Across the globe, amusement parks compete to offer the most thrilling and unforgettable coaster experiences. Let's take a thrilling ride through five of the greatest rollercoasters that stand as testaments to innovation, engineering prowess, and pure adrenaline-fueled fun:
Five Of The Most Unique Pastries Worldwide

Pastries, with their delicate layers, exquisite fillings, and intricate designs, are beloved treats enjoyed across the globe. While many are familiar with classics like croissants, éclairs, and baklava, the world of pastries extends far beyond these well-known delights. From the streets of Tokyo to the cafes of Paris, let's embark on a delectable journey to discover five of the most unique pastries that tantalize taste buds and ignite culinary curiosity:
Be Well, Move Happy: Gardening & Connecting with Nature

Spring is a wonderful time of year to get out and enjoy our natural world. Sara Whatley looks at connecting with nature for wellness and gardening for fitness
Five Countryside Locations Perfect For Warmer Weather

As the temperature rises and the sun begins to shine (just about!), there's no better time to explore the picturesque British countryside. From rolling hills to serene lakeshores, the UK boasts an abundance of natural beauty waiting to be discovered. If you're looking to escape the hustle and bustle of city life and immerse yourself in the tranquillity of nature, here are five British countryside locations perfect for warmer weather:
Five Of The Most Unique Cakes Worldwide

Cakes are more than just desserts; they are edible works of art that reflect culture, tradition, and innovation. While classic cakes like chocolate and vanilla remain timeless favourites, there exists a world of cakes that push the boundaries of creativity and taste. From intricate designs to unusual ingredients, here are five of the most unique cakes from around the globe: