The cost of living continued to rise last month as fuel prices continued to rise. Prices rose 7% in the 12 months to March, the highest rate in 30 years, up from 6.2% in February.
Video not available
The CPI inflation rate rose to 7% in March from 6.2% in February, the Bureau for National Statistics said.
Prices rose 7% in the 12 months to March, the highest rate in 30 years, up from 6.2% in February.
This was again the highest level since March 1992 when inflation was 7.1%.
The rise was higher than the 6.7% analysts had been expecting and was driven by fuel, restaurant and food prices.
But the hike doesn’t even take into account the average 54% increase in energy bills applied to around 22 million homes two weeks ago.
This will not appear in the inflation numbers until next month, when April’s data is expected to show a further rise in inflation and demonstrate the mounting pressures on ordinary people.
The Bank of England has forecast that inflation could peak at around 8% in April, factoring in the hike in the energy price ceiling.
Adam Gerrard / Daily Mirror)
Inflation is the rate at which prices are increasing. If a loaf of bread costs £1 and that rises by 5p, bread inflation is 5%.
The Office for National Statistics said transport was the biggest contributor to rising inflation, with average petrol prices rising 12.6 pence a liter between February and March, the biggest monthly rise since records began in 1990.
This compares to an increase of 3.5 pence per liter between the same months in 2021.
Diesel prices have also risen by 18.8 pence per liter this year, compared with an increase of 3.5 pence per liter a year ago.
ONS Chief Economist Grant Fitzner said: “Broad-based price increases caused annual inflation to rise sharply again in March.
“Among the biggest increases have been petrol costs, with prices largely predating the recent fuel tax cut, and furniture.
“Restaurant and hotel prices also rose sharply in March, while a number of different types of food rose after a fall a year ago.
“Prices for goods leaving UK factories have continued to rise significantly, with metal and transport products both hitting record highs and food hitting its highest price in over a decade. Commodity costs also rose, with a notable rise in the price of crude oil. “
The increases follow 3.1% increases in state benefits and the state pension this week – just half the rate of rising cost of living.
Chancellor of the Exchequer Rishi Sunak referred the households to the Household Support Fund.
He said: “We see rising costs caused by global pressures in our supply chains and energy markets, which could be further exacerbated by Russian aggression in Ukraine.
“I know this is a worrying time for many families, which is why we are taking action to ease the strain by providing around £22billion in support this financial year, including to the most vulnerable through our Household Support Fund .
“We also help as many people as possible to find work – the best way for families to secure themselves economically in the long term.”
Unite General Secretary Sharon Graham said: “The double whammy of rising inflation and falling wages is creating an historic crisis in the cost of living for workers. The bankers and big business are trying to force workers to pay the price for the pandemic.”
Pat McFadden, Shadow Chief Secretary to the Treasury, said: “Not only have energy prices gone up, the government is also implementing tax hikes. And as today’s rising inflation figures show, the prices of everyday items have also risen.
“Boris Johnson and Rishi Sunak cannot show the leadership that the country needs. Britain deserves better.”
Rachel Winter of investment firm Killik & Co said: “Inflation continues its strong rise as we enter another quarter of uncertainty and the economic outlook remains bleak.
“Households are grappling with exorbitant energy and food bills and with no relief in sight, consumer confidence has plummeted.
“Recent data from the Bank of England showed that UK credit card debt is at its highest level on record, suggesting many people are struggling with pressure on their finances. In addition, interest rates have risen, and April brought about a Social Security hike.
“With inflation expected to hit 8% in the coming months, it is important to make saving as intensive as possible.
“One way to do that is through investments. While many people worry about taking too much risk with their savings, it’s also important to question whether enough risk is being taken. Low-risk investments are unlikely to outperform the current rate of inflation.”
https://www.mirror.co.uk/money/breaking-uk-cost-living-rises-26700191 UK inflation rises to 30-year high of 7% amid deepening cost-of-living crisis