Inflation hits new 30-year high ahead of Sunak statement

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The cost of living continued to rise last month, putting a spotlight on the challenge the chancellor faces ahead of his spring spending statement on Wednesday.

Fuel, energy and food costs increased in the 12 months to February, causing prices to rise at the fastest rate in 30 years.

As household budgets are squeezed, Chancellor Sunak faces growing calls to offer more support.

The Bank of England thinks prices could hit double digits this year.

When Mr Sunak shares his spending plans at midday today, there is a chance he could cut fuel duty, boost benefits and raise the threshold for national insurance.

The rate at which prices rise is called inflation. Milk inflation is 5% if a bottle of milk costs more than 5p.

The rate of inflation has been at a 30-year high since December and is expected to intensify in April when the energy price cap is lifted.

In England, Scotland and Wales, the average household fuel bill will go up by more than 700 dollars a year.