UK inflation surges to 5.5% as cost-of-living crisis mounts
The inflation rate has reached a 30-year high
Last updated 27th May 2022
The cost of living has remained at a near 30-year-high- with inflation hitting 5.5% in January 2022.
The Office for National Statistics (ONS) said the cost of clothes and footwear pushed inflation higher last month, with the smallest January discounts in shops since 1990.
The Bank of England also forecasted that inflation will surpass 7% this spring, which could contribute to the tightest squeeze on living standards in six decades.
Inflation: The worst is yet to come
Rising energy prices and fuel costs have been the biggest factors in driving inflation to more than double the Bank's 2% target, though food and drink prices and many everyday essentials have also been increasing.
It is set to worsen in the spring after Ofgem announced an increase in the energy price cap, which will add around £700 on average to annual gas and electricity charges for millions of consumers.
General secretary Christina McAnea said:
"Households already feeling the pinch will be aghast at this latest hike in living costs.
"For many low and middle-earners, food, energy and transport are quickly becoming unaffordable luxuries."
Support from the government
Chancellor Rishi Sunak has so far resisted growing calls for his tax rise to be postponed, instead offering support including a state-funded £200 discount on energy bills in October, which households will eventually have to repay.
Mr Sunak said:
"We understand the pressures people are facing with the cost of living.
"These are global challenges but we have listened to people's concerns and recently stepped in to provide millions of households with up to £350 to help with rising energy bills."