Inflation shot up again in February as fuel, energy and food costs all surged ahead of chancellor Rishi Sunak’s spring spending statement later today.
Prices rose by 6.2% in February, marking the steepest year-on-year increase in 30 years, as well as a sharp uptick from the 5.5% rise recorded in January.
Housing and household services and transport were the two largest contributors to the overall rate of inflation, but retail prices also rose sharply during the month.
Clothing and footwear prices rose 8.8% year-on-year in February, while prices for furniture, household equipment and maintenance rose 9.2%.
The cost of food and non-alcoholic beverages increased 5.1% year on year, below the headline rate reported.
British Retail Consortium chief executive Helen Dickinson said this more modest uplift in food prices indicated 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,” she added.
“Nonetheless, with retailers struggling to absorb these higher costs, shop prices look set to rise in the coming months.”
Retailers including B&Q-owner Kingfisher, Currys, John Lewis and M&S have all unveiled wage increases in recent weeks in a bid to help their employees cope with rising prices as the Bank of England has warned that inflation could hit double digits this year.
“The situation in Ukraine is undoubtedly exacerbating existing cost pressures in the supply chain – from increased energy costs to higher global commodity prices. Many households will also face far higher energy bills and NI contributions from next Friday. As a result, all eyes will be on today’s spring statement, to see if the Chancellor will announce any relief for those families most affected by the cost of living squeeze,” said Dickinson.
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