Experts warn ‘the worst is yet to come’
The UK’s inflation rate rose to 5.5% in January – the highest since 1992.
A surge in gas and energy prices is already set to squeeze household budgets, with average bills predicted to rise by a whopping £693 this year.
Meanwhile the UK’s biggest supermarkets have been forced to raise their prices due to supply disruption and labour shortages, in addition to their own rising energy costs.
The consumers’ association Which? found the eight biggest UK supermarkets were charging up to 9% more for their ranges in December 2021 than they were in January 2021, with the average basket going up 3.4%.
The Bank of England predicts that inflation will rise even higher this Spring, peaking at 7% by April.
The Chancellor Rishi Sunak said the Government was providing £12billion in support for disadvantaged families in changes to the Universal Credit benefit, freezes in alcohol and fuel duties and targeted help for struggling households.
Mr Sunak added: “I understand the pressures people are facing with the cost of living.
“We will continue to listen to people’s concerns as we have done throughout the pandemic.”