UK’s cost of living rise fastest in 30 years as inflation hits 5.4%

The last time inflation rose by such an extent was in March 1992 - when it stood at 7.1%.

UK’s cost of living rise fastest in 30 years as inflation hits 5.4% iStock
The Bank of England, responsible for keeping inflation low and stable, has set a target of two per cent.

The UK’s cost of living surged by 5.4% in the 12 months to December, the biggest jump for 30 years.

The inflation surge, measured by the Consumer Prices Index, is the highest in the Office for National Statistics’ data series – which began in 1997.

The last time inflation rose by such an extent was in March 1992 – when it stood at 7.1%, according to historically modelled data.

The Consumer Prices Index (CPI) measures the average change in the cost of a shopping basket and services purchased by most households in the UK.

The Bank of England, responsible for keeping inflation (price rises) low and stable, has set a target of two per cent.

If the Bank misses the inflation target by more than one percentage point either side of the target, it must tell the government why.

Other figures published by Office for National Statistics this week showed that average pay rises are failing to keep up with the rise in the country’s cost of living.

Between November 2021 and the same month the previous year, regular pay, excluding bonuses and adjusted for inflation, fell by 1%.