Britain’s struggling households have been warned to expect more pressure on their living standards in the coming months.
This comes after the annual inflation rate rose for the 13th month to its highest level in nearly 30 years.
Economists predict that the government’s favored measure of yearly cost-of-living increases.
The consumer price index would rise from 5.5 percent in January to over 8% in April.
According to the latest numbers from the Office for National Statistics (ONS), there is a 0.1 percentage point increase in the annual inflation rate.
January has been the UK’s least favorite month for apparel and footwear since 1990.
Prices did fall this month, but only by a small amount.
Vice-chancellor of the UK, Rishi Sunak, said the government recognized people’s concerns.
However, a top think tank warned the chancellor about rising inflation.
Which would cost the Treasury an extra £11 billion this year.
To service the UK’s more than £2 trillion national debt.
According to City economists, the recent events increased the prospects of the Bank of England hiking interest rates.
This has happened in the UK for the third time in a row.
According to business and consumer organizations, the steep spike in inflation will undermine living standards.
However, it pushes more businesses into bankruptcy.
Labor and unions say the government fails to address the UK’s rising cost of living crisis.
The CBI, a business lobbying group, suggests the government responds by lowering investment taxes to enhance productivity.
It also allows businesses to grant sustainable annual wage increases.
The TUC’s general secretary, Frances O’Grady, indicates that increased energy expenses and tax hikes have been implemented in April.
Last month, the Bank of England predicted that inflation would peak at more than 7% in the spring before falling to its target rate of 2% over the next two years.