Inflation Hits 30-Year High of 5.5% in the UK

Consumer prices rose to 5.5% in January from 5.4% a month earlier, according to the Office for National Statistics (ONS).

The increase was driven by prices for clothing, footwear and furniture. Economists expect inflation to climb to 7% in April, when Ofgem will raise the cap on energy bills, and fall in the second half of the year.

People that were previously just about surviving are now going under.

Since pandemic restrictions were eased last year, companies have faced higher wage, shipping and energy costs which they have passed on to customers.

Rent is central to the lives of millions, especially the young and for many families. ONS said today that rents rose by 2% in the year to January- the biggest annual growth rate since February 2017. Excluding London it was 3%.

Families are already cutting back as the cost of living continues to spiral upwards with the inflation figure for January hitting a 30-year high of 5.5 per cent.

It is likely to get worse before it gets better, economists warn.

The misery index is calculated by combining inflation and unemployment into a single metric of economic hardship.

Alongside housing costs and furniture prices, clothing was the biggest driver of inflation.

The peak in inflation is set to coincide with a rise in energy bills and National Insurance rates, Universal Credit support and forthcoming tax rises.

Inflation is putting a strain on many families' higher prices for nearly everything from food and fuel to clothes and energy.