INFLATION has soared to 5.5% according to new data from the Office for National Statistics.
In December it had already reached a 30-year high of 5.4%, but now rates have risen another 0.1% putting even more strain on households.
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It means now inflation is at its highest since March 1992 – at that time it stood at a whopping 7.1%.
But the soaring rate trickles down to Brits’ pockets too, as the everyday person can expect to pay more for things like groceries and fuel, as well as second-hand cars and rentals.
Analysts had already predicted a rise in the inflation rate, and many expect it to rocket further to 7% by April.
It’s all thanks to high energy and food prices and more.
The rising prices have already pushed up bills and created a cost of living crisis for millions of Brits.
Energy bills are due to rise by £693 for many, in just a few months’ time.
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That’s because the energy price cap, in place to stop households being overcharged on their bills, will escalate to £1,971 a year by the springtime.
But that might not be the end of rising bills as costs are only expected to soar further later this year in October, when the next price cap announcement is – and another ise hasn’t been ruled out.
Transport costs are also to blame for the hiked inflation rate, and that’s because fuels are pricier and the cost of second-hand has gone up.
Yet on top of that, there’s also soaring food costs, and tax increases on the way too.
Grant Fitzner, chief economist at the Office for National Statistics, said: “Inflation ticked up again in January, reaching a near 30-year high.
“Clothing and footwear pushed inflation up this month and although there were still the traditional price drops, it was the smallest January fall since 1990, with fewer sales than last year.
“The rising costs of some household goods and increases in rents also pushed up inflation.
“However, these were partially offset by lower prices at the pump, following record highs at the end of 2021.”
How will it affect household finances?
Most noticeably you’ll find the cost of all your everyday essentials go up.
That means at the supermarket your weekly shop will be higher, and your bills at home will rocket too.
But wages failed to keep up with inflation last year so Brits have less in their pockets to fork out on all the rocketing costs.
If your salary hasn’t kept up with the soaring rates, then you could find your household finances are squeezed and it’s tougher to keep on top of new prices.
The value of your savings could also decline as an effect of rising inflation, too.
More to follow…
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