UK inflation hits 30 year high amid cost of living crisis

Data released by the Office for National Statistics’ (ONS) this morning shows that consumer prices were at 5.5 per cent inflation in January.

This means prices climbed by 5.5 per cent in the 12 months leading up to January 2022, far exceeding the Bank of England’s 2 per cent target.

It also represents the highest such increase since March 1992 when consumer price index inflation stood at 7.1 per cent.

This news comes ahead of the increased energy cap price scheduled to come into force from 1 April, and the 1.25 per cent hike in national insurance contributions also set to be rolled out the same month.

It is estimated that the impact on living costs will be so great that someone earning £50,000 would require a 10 per cent bump in yearly pay to dodge a cut to their real-term salary.

Responding to the news, John O’Connell, chief executive of the TaxPayers’ Alliance, said: “Rising inflation could act as a stealth tax on unsuspecting taxpayers.

“With households facing a cost of living crisis, now is a terrible time for any tax rise, including freezing thresholds.

“Instead of adding to the pressure, ministers should implement targeted tax cuts to give taxpayers and businesses under the cosh some much-needed respite.”

Labour’s shadow chancellor Rachel Reeves responded via Twitter, writing: “NEW: Inflation at 5.5%.

“Food. Petrol. Energy. We’re all feeling it.

“This isn’t just a global problem. The Tories have failed to get a grip and working people are paying the price.”