Rising inflation tightens the squeeze on living standards across Britain

A sharp rise in inflation last month – with CPIH inflation rising from 3.8 To 4.6 per cent, and CPI inflation rising from 4.2 to 5.1 per cent – tightened the squeeze on living standards across Britain, amid widespread uncertainty as to how large and long-lasting it will be, the Resolution Foundation said today in response to the latest ONS prices data.

Jack Leslie, Senior Economist at the Resolution Foundation, said:

“Inflation rose sharply again last month to its highest level Summer 2008, driven by the rising cost of food and fuel. And with factory gate inflation still rising, inflationary pressures will continue to build in early 2022.

“It’s too early to say how much affect the Omicron wave will have on inflation – and the extent to which falling demand will be offset by supply chain disruption.

“But early 2022 is likely to marked by acute economic pain for some parts of the economy – notably hospitality – alongside a nationwide living standards squeeze.”