LONDON – Consumer prices in the United Kingdom have risen at the fastest pace in almost 30 years as higher costs for energy, transportation, food and furniture squeezed household incomes, AP reported.
Inflation accelerated to 5.4% in the 12 months through December, up from November’s 5.1 per cent, the Office for National Statistics said Wednesday. Last month’s annual figure is the highest since March 1992, when inflation stood at 7.1 per cent.
Economists warned that inflation is likely to rise further in the coming months as tax increases and the full impact of a recent surge in energy prices hit consumers. Gas and electricity bills for millions of households are expected to balloon by 50 per cent or more in April when a semi-annual adjustment in the energy price cap takes effect.
“What is of particular concern is that the change from November has come mainly from an increase in the price of food,” said Kitty Ussher, chief economist for the Institute of Directors. “Not only does this provide additional evidence that inflation is becoming endemic rather than transitory, it also bodes ill for households facing multiple rises in the cost of living this spring.”
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