Finance

Finance

UK inflation rises more than expected to a new 30-year high

23 March 2022 13:47 (UTC +04:00)

Britain’s inflation rate surged to a new 30-year high of 6.2%, adding to pressure on the Chancellor of the Exchequer Rishi Sunak to protect consumers from a tightening squeeze on living standards, APA reports citing Bloomberg.

Hours before Sunak is due to add to the 21 billion pounds ($28 billion) he’s already set out to cushion households from a surge in costs, the Office for National Statistics released figures showing price increases are broadening out across much of the U.K. economy.

The surge in prices has exceeded the forecasts of the Bank of England and Treasury, fanning concerns that shortages of workers following the end of the pandemic, along with the war in Ukraine, will lead to inflation spiraling further upward.

“The chancellor will need to set out a bold response to this cost of living crisis,” said Jack Leslie, senior economist at the Resolution Foundation. “Another sharp rise in inflation offers a foretaste of the huge income squeeze coming this year.”