// Inflation hits new 30-year high ahead of the Chancellor’s spending statement
// Prices rose by 6.2% in the 12 months to February – the fastest for 30 years – as fuel, energy and food costs surged
Rising prices across the board sent UK inflation soaring to a new 30-year high last month as the cost-of-living crisis intensified, according to official figures.
The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation rose to 6.2% in February, up from 5.5% in January.
This is the highest CPI 12-month inflation rate since ONS began recording the figure in March 1992, when it stood at 7.1%.
The rise was higher than expected and comes after prices lifted across food, clothing and footwear and a range of products and services.
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Retail bosses are calling on chancellor Rishi Sunak to offer more support for households in his Spring Statement taking place later today.
Experts have also warned that prices will rise further still as the Ukraine conflict pushes up already sky-high inflation, adding to the significant price rises for energy, fuel, commodities and food.
Last week, The Bank of England raised interest rates for the third time since mid-December, to 0.75% from 0.5%, and warned inflation will now peak at around 8% in April – and could hit double-digits if wholesale energy prices continue to soar amid the Ukraine war.
Grant Fitzner, Chief Economist at the ONS, said: “Inflation rose steeply in February as prices increased for a wide range of goods and services, for products as diverse as food to toys and games. Clothing and footwear saw a return to traditional February price rises after last year’s falls when many shops were closed.”
Helen Dickinson, chief executive of the British Retail Consortium said: “Rising inflation remains a significant concern for the economy, squeezing household incomes and increasing cost pressures on retailers. For the second month in a row, Transport saw the highest rate of inflation this month, while food inflation rose slower than the headline rate.
“The BRC’s Shop Price Index, which tracks the price of basic goods, showed an even smaller price rise in food, suggesting that retailers are successfully managing to limit cost increases for many essential groceries. Many supermarkets have expanded their value ranges to support individuals and households on lower incomes. Nonetheless, with retailers struggling to absorb these higher costs, shop prices look set to rise in the coming months.
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