Recent inflation record has already been surpassed this month as cost of living squeeze deepens

The latest ONS inflation data for March published today (Wednesday) saw CPIH inflation rise to 6.2 per cent, and CPI inflation rise to 7.0 per cent. This is not only the highest rate of inflation consumers have faced in 30 years, it is also the fastest inflation has picked up over the course of a year – in March 2021, CPI inflation was just 0.7 per cent compared to the 7 per cent in the latest figures. A further significant increase is expected in April – setting new records in terms of the scale and pace of rising prices – as a result of the energy price cap rising.

Commenting on the data, Jack Leslie, Senior Economist at the Resolution Foundation, said:

“Inflation last month reached levels not seen since the early 1990s, but it is still well below the price pressures families are currently experiencing with the recent energy price cap likely to have taken inflation up to over 8 per cent in April.

“With ONS data yesterday showing that wages are not keeping pace with rising prices, Britain’s cost-of-living crisis – on track to big the biggest squeeze since the mid-70s – will continue to worsen before it starts to ease at some point next year.

“The sheer scale of this inflation-led squeeze on living standards makes it all the more remarkable how little support the Chancellor provided in his Spring Statement – a decision that will surely have to be revisited before the Autumn Budget.”