UK Inflation Hits 30-Year High to 7%

The squeeze on households became even tighter in March, as fast rising food and gasoline prices pushed inflation to a 30-year high, even before energy bills skyrocketed, the UK's Office for National Statistics (ONS).

According to the UK's ONS, Consumer Prices Index (CPI) inflation increased by 7% in the year to March, up from 6.2 percent in February.

It was the highest level since March 1992, when inflation in the UK was 7.1 percent.

The increase was greater than the 6.7 percent predicted by economists, and it was led by increasing fuel, restaurant, and grocery prices, further squeezing consumers.

"As a result of broad-based price increases, annual inflation rose strongly again in March," stated ONS chief economist Grant Fitzner.

"Among the most significant increases were gasoline prices, which were primarily collected prior to the recent reduction in fuel duty, and furniture."

He also saw sharp increases in restaurant and lodging expenses, as well as increases in the cost of various grocery items.

In March, the average price of petrol was 160.2p per litre, while diesel was 170.5p.

Clothing and shoes increased by 9.7 percent in the year to March, furniture, domestic equipment, and maintenance increased by 10.4 percent, and food and non-alcoholic beverages increased by 5.9 percent.

According to the data, the price of oils and fats for food in the UK jumped by 7.2% in March alone, adding to a more than 18% increase over the previous year.

Because Ukraine is the world's largest supplier of sunflower oil and Russia is the second-largest supplier, the war has impacted global pricing.

The March inflation rate does not account for the average 54% increase in energy bills that was imposed on almost 22 million homes two weeks ago.

This will not be reflected in CPI figures until next month, when April's data is projected to show another increase, emphasising the mounting strain on ordinary people.

"With ONS data yesterday showing that wages are not keeping pace with rising prices, Britain's cost-of-living crisis – on track to be the biggest squeeze since the mid-1970s – will continue to worsen before it begins to ease at some point next year," said Jack Leslie, senior economist at the Resolution Foundation think tank.

As additional energy prices are taken in, the Bank of England predicts that inflation will peak at roughly 8% in April.

According to Alpesh Paleja, head economist at the Confederation of British Industry, more inflationary pressures are on the way.

"Global commodity price volatility and continued supply chain disruption will continue to increase price pressures," he warned.

"As a result, businesses would face even higher prices, while consumers will face a significant increase in their cost of living."

He advocated for initiatives to make houses and businesses more energy efficient in order to reduce expenses, something that experts claimed was lacking in the government's energy policy released last week.

In response to the latest numbers, Chancellor Rishi Sunak stated, "We're seeing increased costs caused by global pressures in our supply chains and energy markets, which could be compounded further by Russian actions in Ukraine."

He stated that the government will provide £22 billion in assistance this fiscal year and is assisting people in finding work.