UK inflation reaches 5.4%, the highest rate in nearly 30 years

The rate of Consumer Price Index inflation increased to 5.4% in December from 5.1% in November, the Office for National Statistics has said.

Responding to the rise in CPI inflation, Chancellor Rishi Sunak said: “I understand the pressures people are facing with the cost of living and we will continue to listen to people’s concerns as we have done throughout the pandemic.

“We’re providing support worth around £12 billion this financial year and next to help families with the cost of living.

“We’re cutting the Universal Credit taper to make sure work pays, freezing alcohol and fuel duties to keep costs down, and providing targeted support to help households with their energy bills.”

Grant Fitzner, chief economist at the Office for National Statistics (ONS), said: “The inflation rate rose again at the end of the year and has not been higher for almost 30 years.

“Food prices again grew strongly while increases in furniture and clothing also pushed up annual inflation.

“These large rises were slightly offset by petrol prices, which despite being at record levels were stable this month, but rose this time last year.

“The closures in the economy last year have impacted some items but, overall, this effect on the headline rate of inflation is negligible.”