Commenting on the latest ONS Prices data, which showed that CPI inflation increased by 6.2 per cent in February, up from 5.5 per cent in January, while CPIH increased by 5.5 per cent, Jack Leslie, Senior Economist at the Resolution Foundation, said:

“Another sharp rise in inflation last month offers a foretaste of the huge income squeeze coming this year, with inflation likely to hit at least 8 per cent this spring – which could be the highest it’s been in 40 years – along with a second spike this autumn.

“This prolonged period of high inflation – which millions of people have simply never experienced before – is a complete disaster for living standards. It will mean pay packets continuing to shrink, along with vital income support such as Universal Credit and the State Pension.

“The Chancellor will need to set out a bold response to this cost of living crisis in his Spring Statement today, starting with ensuring that benefits keep pace with inflation over the coming 12 months, rather than shrink by £10 billion as they are currently on course to do.”