Personal Finance. Money. Investing.

UK Inflation Reaches 30-Year High Ahead Of Spring Statement

UK inflation increased quicker than expected last month, reaching a 30-year high. The rise has exacerbated a historic squeeze on household finances that Chancellor of the Exchequer Rishi Sunak is under pressure to mitigate in the spring statement later on Wednesday.

Posted: 23rd March 2022 by Finance Monthly
Share this article

According to the Office for National Statistics (ONS), consumer prices rose by 6.2% year-on-year in February after a 5.5% rise in January. This is its highest rate since March 1992. 

The UK now has the second-highest annual inflation rate among Group Seven countries, behind only the US which hit a four-decade-high of 7.5% in January of this year. 

The ONS pointed to UK household energy bills, which were up almost 25% on a year ago, and petrol as the biggest drivers of February’s price hike. The ONS also warned that food prices were rising across the board in a further blow to low-income households.

The UK economy has shown relative strength during the last few years, but we can expect more pressure if the rising commodity (energy, food, agriculture) costs are not tackled soon enough, as well as if the planned increase in National Insurance goes ahead,” commented Lecturer in Finance Dr Nikolaos Antypas. 

Overall, we should expect measures to minimise the unavoidable economic suffering for the most vulnerable UK residents instead of net positive measures for all socioeconomic strata.”

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram