Cost of living crisis: Rate of inflation rises to 7%


Inflation is now at its highest point since March 1992 (Picture: Getty/ Rex)

Brits face a further squeeze on their household incomes after the rate of inflation rose to another 30 year high.

Prices increased by 7% in the 12 months to March, up from the previous 30 year record of 6.2% in February.

It adds to the cost of living crisis that has seen bills and taxes go up by unprecedented amounts – leading to the biggest fall in living standards in 70 years.

The Office for National Statistics (ONS) said inflation is now at its highest point since March 1992, when the figure stood at 7.1%.

Experts say rising fuel and food prices sent inflation soaring, even before household energy bills spiked.

Grant Fitzner,  chief economist for the ONS, said: ‘Broad-based price rises saw annual inflation increase sharply again in March.

‘Amongst the largest increases were petrol costs, with prices mostly collected before the recent cut in fuel duty, and furniture.

‘Restaurants and hotel prices also rose steeply in March while, after falling a year ago, there were rises across a number of different types of food.

‘The price of goods leaving UK factories has continued to rise substantially with metal and transport products both at record highs and food reaching its highest rate for over a decade. Raw material costs also rose, with a notable increase in the price of crude oil.’

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