Inflation rose to seven per cent in March, the highest rate in 30 years and beats February’s rise of 6.2% per cent.
The Office for National Statistics (ONS) said fuel and food prices helped push up the Consumer Prices Index (CPI) measure of inflation.
Transport, including petrol prices, was the biggest contributor to rising prices in March. The average cost of petrol rose 12.6p between February and March. This compares with a rise of 3.5p per litre between the same months of 2021.
Diesel prices rose by 18.8p per litre this year, compared with a rise of 3.5p per litre a year ago.
Prices are expected to continue rising, as today’s increase does not take into account the hike to energy bills which was applied to millions of households two weeks ago.
Utility bill spike
Energy bills rose by an average of 54 per cent for around 22m households on their energy provider’s standard variable tariff.
Wages are not keeping up with soaring inflation, and the cost of living is set to rise further as the Bank of England has predicted inflation could reach eight per cent by April.
Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said: “Most worrying is the fact that so many of the most painful price rises have hit life’s essentials. The bare necessities of heating and eating are absorbing more and more of our income.
“The soaring cost of energy is just one of many pain points, alongside record fuel prices, runaway prices of supermarket staples like margarine and milk, and the highest rise in clothing prices since it was first modelled in 1989.”
It comes as figures yesterday show wages were already falling behind inflation in February.
Wage growth
Average salaries jumped four per cent between December and February but real wages fell by one per cent after taking inflation into account, according to the ONS.
There were vast differences in growth between the public sector, where total pay was up just 1.9 per cent, compared to the private sector where pay soared by 6.2 per cent.
On Monday state benefits, including the state pension, rose by an average of 3.1 per cent.
Joanna Elson CBE, chief executive of the Money Advice Trust, said: “Today’s inflation figures will only add to the mounting pressure on households, with many already buckling under the strain of rising costs.
“Urgent action is needed to prevent more people facing impossible choices trying to meet basic needs, and at risk of an increasing burden of debt.
“Raising benefits above Monday’s 3.1 per cent increase, would be a good start, along with more targeted support for people struggling with household bills.”
