The annual rate of inflation has hit a 30-year high of seven per cent in March amid rapidly rising food and fuel prices.
Figures by the Office for National Statistics showed that the largest contributors to the growing inflation were sky-rocketing fuel prices and energy bills.
The Consumer Prices Index (CPI) inflation rose 7% in the year to March, up from 6.2% in February.
Inflation, the rate at which prices rise, remains at its highest point since March 1992 when it hit 7.1%.
Average petrol and diesel prices both reached record highs prices at 160.2p per litre and 170.5p respectively.
READ MORE: Crisis warning for Scots as cost of fuel soars and savings are hit
With petrol rising by 12.6p per litre between February and March this is the largest monthly rise in its cost since records began in 1990, the ONS said.
The figures do not account for a 54% increase in energy bills after the price cap was raised on April 1.
This will not appear in CPI figures until next month, when April’s data is expected to show another jump, further highlighting the increasing squeeze on ordinary people.
“Broad-based price rises saw annual inflation increase sharply again in March,” ONS chief economist Grant Fitzner said.
“Amongst the largest increases were petrol costs, with prices mostly collected before the recent cut in fuel duty, and furniture.”
A steep jump was also seen in restaurant and hotel prices while the cost of many food items rose.
The price of clothes and shoes rose by 9.8% in the year to March, furniture, household equipment and maintenance jumped 10.3% while food and non-alcoholic beverages were up 5.9%.
The impact of the Ukraine conflict was also seen in a 7.2% increase in oils and fats for food in March alone. This adds to a more than 18% rise in the last year.
Ukraine is the world’s main supplier of sunflower oil, and Russia is the second-largest supplier impacting global prices.
Chancellor Rishi Sunak said in response to the latest figures: “We’re seeing rising costs caused by global pressures in our supply chains and energy markets which could be exacerbated further by Russian aggression in Ukraine.”
He said that the Government would provide £22 billion of support this financial year and is helping people into work.
Labour shadow chief secretary to the Treasury Pat McFadden said: “The cost of living is hitting households hard. Not only are energy prices up, the Government is imposing tax rises. And as today’s rising inflation figures show, prices on everyday items are up too.
“Labour has a plan to cut energy bills through a one-off windfall tax on oil and gas producer profits. Meanwhile, the Chancellor has increased taxes for working people to their highest levels in 70 years.”
Jack Leslie, senior economist at the Resolution Foundation think tank, said: “With ONS data yesterday showing that wages are not keeping pace with rising prices, Britain’s cost-of-living crisis – on track to be the biggest squeeze since the mid-70s – will continue to worsen before it starts to ease at some point next year.”
The Bank of England has predicted that inflation could peak at around 8% in April as the new energy prices are factored in.
Alpesh Paleja, lead economist at the Confederation of British Industry, also warned of further inflation rises to come.
“Volatility in global commodity prices and ongoing supply chain disruption will continue to stoke price pressures,” he said.
“The result will be even higher costs for businesses, and a deep squeeze in the cost-of-living for households.”
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel