Boris nightmare as UK cost of living crisis explodes – up to highest level for 30 YEARS

Hospitality: Interest rates to rise further to match inflation

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The Office for National Statistics said inflation rose to 5.4 percent in December from 5.1 percent in November. This is well above the Bank of England’s target of 2 percent. Responding to the rise in inflation, Chancellor Rishi Sunak said: “I understand the pressures people are facing with the cost of living and we will continue to listen to people’s concerns as we have done throughout the pandemic.

“We’re providing support worth around £12 billion this financial year and next to help families with the cost of living.

“We’re cutting the Universal Credit taper to make sure work pays, freezing alcohol and fuel duties to keep costs down, and providing targeted support to help households with their energy bills.”

Grant Fitzner, chief economist at the ONS, said: “The inflation rate rose again at the end of the year and has not been higher for almost 30 years.

“Food prices again grew strongly while increases in furniture and clothing also pushed up annual inflation.

“These large rises were slightly offset by petrol prices, which despite being at record levels were stable this month, but rose this time last year.

“The closures in the economy last year have impacted some items but, overall, this effect on the headline rate of inflation is negligible.”

The news comes after figures revealed  average pay rises are failing to keep up with the rising costs of living. 

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