HOUSEHOLD staples are rocketing in price, leaving shoppers feeling the pinch.
Latest data from the Office for National Statistics reveals that inflation has hit its highest level since the early 90s, soaring to 5.5%.
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The last time inflation was higher was March 1992 when the inflation rate was 7.1%
It means the price of all the things you need to stock up at home are rising at a faster rate than many Brits’ wages are, making everything much harder to afford.
The ONS said rising energy prices were the biggest contributor to inflation, as well as increasing costs of food, alcohol, tobacco, and clothing.
Families are now spending more on their weekly shop for essential food items compared to a year ago.
Plus, energy bills are rocketing with price hikes hitting the most hard-up households – leaving many people facing the choice between heating and eating.
The ONS data shows that even the prices of used cars has rocketed, and on top of that petrol prices hit a new record high earlier this month.
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But as the cost of living crisis continues, it’s more than just your grocery shop and energy bills that are going up – we round up the worst offenders.
What’s going up in price fastest?
Top of the charts is the price of food.
At the start of the year, Tesco boss, John Allen, warned food prices would soar by as much as 5% in just months, and some items are going up by more.
The latest ONS data, food products like margarine and other vegetable fats had shot up a whopping 37.2% in the year to January 2022.
Pasta and couscous have gone up by 14.9%, and jam, marmalade and honey by 13.6%.
Another store cupboard staple, eggs, are 8% more expensive than a year ago.
What about non-supermarket items?
The price of second-hand cars has increased a massive 28.7% over the past year.
Much of this is due to a shortage of semiconductor chips, which has affected the motors industry.
Although, prices of new cars have gone up by just 3.5% in comparison.
Even motorists who aren’t buying a new car are being affected though as petrol prices are up 24.4%, and diesel 22.9%.
Even the average parking charges have risen by 25.9%, while the cost of public transport is also set to increase.
In the home, energy bills are due to rise by £693 for millions of people, in just over a month’s time when the energy price cap goes up to £1,971.
The ONS said electricity, gas and other fuel bills have risen 22.9%.
Further hikes are expected when the price cap is increased again later this year.
How does inflation affect my finances?
As much as inflation means everyday essentials going up, there are other things that get caught in the ripple effect.
That’s because a higher rate of inflation means your money doesn’t go as far, and you have to spend more to get more, for what you’ve put in.
That can be with the price of food – something that’s a pound might be an extra 5p or more with the rising rates – but it can also impact your savings.
If the inflation rate is higher than the interest you’re earning on your savings, you are effectively losing money every year.
Sarah Coles, senior personal finance analyst at Hargreaves Lansdown said: “It’s no wonder so many of us are struggling with rising prices, because inflation has hit 5.5%.
“To make matters worse, it’s set to accelerate in the coming months. The Bank of England expects it to be closer to 6% next month and 7.25% in April.
“Over time, we’ll see the impact spread increasingly to people who have tended to think of themselves as a relatively comfortable, as they start to find it increasingly difficult to make ends meet.”
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