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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.<\/p>\n
“We’re providing support worth around £12 billion this financial year and next to help families with the cost of living.<\/p>\n
“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.”<\/p>\n
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.<\/p>\n
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“Food prices again grew strongly while increases in furniture and clothing also pushed up annual inflation.<\/p>\n
“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.<\/p>\n
“The closures in the economy last year have impacted some items but, overall, this effect on the headline rate of inflation is negligible.”<\/p>\n
The news comes after figures revealed average pay rises are failing to keep up with the rising costs of living. <\/p>\n