Inflation: Cost of living rises at fastest pace for 30 years

The image is from the same source.

The cost of living rose at its fastest pace in 30 years in the 12 months to December, driven by higher food and energy bills.

The ONS said that the UK's Consumer Prices Index measure of inflation rose to 5.4% in December from 5.1% in November.

In March 1992, inflation was 7.1%.

Some analysts think it could reach that level again, with gas and electricity costs set to increase further.

The cost of living increased in December due to increases in prices of furniture and clothing.

Grant Fitzner of the ONS said that petrol prices rose this time last year despite being stable this month.

The rate is well above the Bank of England's 2% target.

The rate at which prices are rising is called inflation. Milk inflation is 5% if the price of a bottle of milk goes up by 5p.

You won't notice price increases from month to month. The money people earn doesn't go as far right now because of the rising prices.

Average pay rises are not keeping up with the cost of living according to the ONS figures.

Regular pay fell 1% in November compared with the same month in the previous year.

The director of the Institute for Fiscal Studies said that people on low incomes would be hardest hit by the rises.

He said that an increase at this point is going to be particularly painful because wages have not grown as fast as prices over the last decade.

The image is from Jessica Langton.

Jessica said that her petrol costs had gone up by £100 per month.

The 21-year-old, who lives in Derby, is in the final year of her studies and is funded by a tuition loan with a fixed interest rate.

She is concerned that wages have not increased in line with the cost of living, which means that a sudden bill such as a car breakdown would be a huge stress to cover.

There is more on how Generation Z is dealing with inflation.

Capital Economics' Paul Dales said that inflation was expected to hit 7% by April.

The Bank of England was forecasting a peak of 6 percent when it raised rates in December.

Although inflation will fall back, we think it will stay above 4% for all of this year and won't drop to 2% until April 2023."

The Monetary Policy Committee of the Bank of England is expected to raise interest rates in February.

The wave of inflation is still going strong.

Since the Bank of England was given independence, the annual rate of the Consumer Price Index has never been higher.

We can tell that this is the highest since March 1992 because the statisticians have modeled what the CPI would have been. The rate of inflation the Bank has as its legal target is over double. Food and used car prices are going up.

The bad news is that it is going even higher. The Retail Price Index, an inflation measure used by government and businesses, is already at an incredible 7.5%. Independent analysts think the main measure will hit 7% in April when the energy price cap is raised again.

The government and the energy companies are in charge of where it hits over 6%. The gas that they will charge for has been purchased. The inflation that will push these figures higher in the coming months is coming from American liquified gas.

The concern is that the predicted peak inflation will be higher than expected, and that it will stay at high levels as the energy price cap is further raised.

Chancellor Sunak said that he understands the pressures people are facing with the cost of living, and that they will continue to listen to people's concerns.

He said the government was giving support worth about $12 billion this year and next.

The cost-of-living crisis is going to get worse in the coming months, according to the Shadow Treasury secretary.

Working families are feeling the pinch. The crisis is going to get worse because of the rise in the energy price cap, real wages falling and the tax rises coming down the tracks.

The image caption is.

The Kent Food Hub is in Ashford.

Kent Food Hubs is a co-operative that helps traders and producers in the county to sell directly to customers.

She says her suppliers are seeing increases in their costs.

She said that food and fuel are more expensive. "For my traders, raw materials are more expensive, whether that's the lentils to make a meal or the cardboard they use to package it."

She says that traders are having trouble competing with the large supermarket chains, so they are reluctant to raise prices.

It might be on a price rise if they don't find a way to make it sustainable.

How are you affected by the rising cost of living? Send your experiences to haveyoursay@bbc.co.uk.

If you are willing to speak to a journalist, please include a contact number. You can get in touch with us through the following ways.

If you can't see the form on this page, you can email HaveYourSay@bbc.co.uk or use the mobile version of the website to submit your question or comment. Please include your name, age, and location in your submission.

Inflation.
The economy of the UK.
The office of national statistics.