According to new data from the ONS, UK inflation has soared to a new 30 year high.
This morning’s figures show that the consumer price Index soared to 6.2% in February, an increase of 5.5 percent in January and above the forecasted 6% forecast.
This is the highest annual price rise since March 1992.
The ONS also stated that the retail price index reached a record 8.2 percent, a 31-year high.
Featured
New firearms licensing database can “significantly improve the service”, says BASC
Featured
House of Lords votes in favor of at-home abortion provision
These stats come as Rishi Sunak, the chancellor of India, prepares to address MPs today with his spring statement.
Climbing prices will likely up the pressure on Sunak to scrap next month’s scheduled tax rises as households struggle to manage rising bills.
Commenting on the latest ONS Prices data, Jack Leslie, senior economist at the Resolution Foundation, said: “Another sharp rise in inflation last month offers a foretaste of the huge income squeeze coming this year, with inflation likely to hit at least 8 per cent this spring – which could be the highest it’s been in 40 years – along with a second spike this autumn.
“This prolonged period of high inflation – which millions of people have simply never experienced before – is a complete disaster for living standards. It will lead to pay packets continuing shrinking, as well as vital income support like Universal Credit and State Pension.
“The Chancellor will need to set out a bold response to this cost of living crisis in his Spring Statement today, starting with ensuring that benefits keep pace with inflation over the coming 12 months, rather than shrink by £10 billion as they are currently on course to do.”
Kitty Ussher, chief economist at the Institute of Directors, said: “This higher-than-expected rise, even before the anticipated increase in energy bills in April, demonstrates that rising inflation is now hardwired into routine business decisions, with price increases spread widely across all sectors of the economy.
“Today’s data is consistent with our own membership surveys, which also showed a rapid increase in expectations of inflation from January to February.
“High inflation adds to the uncertainties and costs of doing business. For households dependent on their benefits income, there is a further concern. This is because benefits are increased in line the rate of inflation as it was in September. That rate, at 3.1%, was only half of the current rate. All eyes will be on the Chancellor this afternoon to see if this is something he is prepared to take action on.”
