UK Inflation Hits 7%, Exacerbating Cost Of Living Concerns
According to data from the Office for National Statistics (ONS), UK inflation increased by 7% in the 12 months to March, marking the highest rate since 1992.
Inflation is expected to rise again in April, possibly over 8%, due to the 54% increase in the energy price cap at the start of the month.
Record-high increases in vehicle fuel prices pushed inflation higher. Average petrol prices sat at 160.2p per litre in March 2022, compared with 123.7 pence per litre in March 2021. Diesel prices hit 170.5p per litre in March after Russia’s unprovoked attack on Ukraine raised oil prices.
Gas prices, meanwhile, were 28.3% higher in March than a year ago, with electricity up by 19.2%. These figures do not include the recent increase in the energy price cap.
Addressing the UK’s spiralling cost of living crisis, Chancellor of the Exchequer Rishi Sunak has said, “I know this is a worrying time for many families, which is why we are taking action to ease the burdens by providing support worth around £22bn in this financial year, including for the most vulnerable through our Household Support fund.”
"We're also helping as many people as possible into work – the best way for families to gain economic security in the longer term."