UK inflation jumped to 5.4 per cent in December, its highest rate in 30 years, deepening a cost of living crisis that is squeezing household incomes and putting further pressure on the Bank of England to raise interest rates.
The rise in the consumer price index again exceeded economists expectations, and is set to increase significantly further in the spring when gas and electricity prices are expected to jump in April by up to 50 per cent.
The rate in December exceeded peaks of 5.2 per cent in 2011 and 2008, and hit a rate not seen in the UK since early 1992 when inflation was coming down from a peak of 8.4 per cent.
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