LONDON (Parliament Politics Magazine) – The previous month, the cost of living continued to rise, highlighting the problem facing the chancellor ahead of his spring budget statement on Wednesday.
Fuel, electricity, and food expenses soared, causing prices to rise by 6.2 percent in the year to February, the quickest in 30 years.
As household budgets are stretched, Chancellor Rishi Sunak is under increasing pressure to provide greater assistance.
Prices are rising faster than salaries, according to the Bank of England, which predicts double-digit this year.
When Mr Sunak delivers his Spring Statement later on Wednesday, there is speculation that he would reduce fuel duty, increase benefits, and raise the National Insurance level.
When Mr Sunak delivers his Spring Statement later on Wednesday, there is speculation that he would reduce fuel duty, increase benefits, and raise the National Insurance level.
The rate at which prices increase is referred to as inflation. If the price of a bottle of juice increases by 5p, the inflation rate is 5%.
Prices have been climbing at their quickest rate since the 1990s since December of last year.
“Rising inflation is a big concern for the economy, pinching household incomes and increasing cost pressures on retailers,” said the chief executive of the British Retail Consortium, Helen Dickinson,Â
When the energy price cap is raised in April, inflation is projected to accelerate.
In England, Wales and Scotland, this will increase the average fuel bill of households by £693 per year, while a projected increase in National Insurance will impose pressure on household budgets.
Gas prices were almost a third higher in February than a year ago, according to the Office for National Statistics (ONS), and electricity costs were nearly a fifth higher.
During the month, average petroleum prices reached new highs, while food prices increased by over 1%, the greatest monthly increase since the year 2012.
Other commodities such as toys, clothing, and furniture, according to ONS head economist Grant Fitzner, have also increased in price.
“The cost of goods leaving the factories of the UKÂ has been steadily growing and is now at its highest level in 14 years,” he added.
