Inflation reaches 6.2% ahead of Chancellor’s Spring Statement

The Office of National Statistics’ (ONS) Consumer Price Index (CPI) has revealed a 6.2% rate of annual inflation, the highest figure in 30 years and up from last month’s record 5.5%.

The latest ONS data on inflation comes ahead of Chancellor Rishi Sunak’s Spring Statement, set to be announced today (23rd March) from 12.30pm, where it is hoped he will announce a raft of measures to take action on rising prices.

The ONS’ February inflation figures reveal prices are rising across a broad range of household expenses with no areas showing price falls to offset them. Energy and fuel costs were among the biggest risers again this month, as Russian military action in Ukraine continues to push up on oil and gas prices further as the international community look to buy elsewhere. Energy price rises are also having a knock-on impact on prices elsewhere, particularly food and drink and services.

Among measures expected to be announced by Chancellor Rishi Sunak include a reduction in fuel duty, aimed at helping mitigate rising energy costs on the economy. However opposition politicians and some backbenchers in his own party are also calling for him to do more to mitigate the risk of high inflation on the economy and household budgets, including scrapping an upcoming 1.25 percentage-point rise in National Insurance, a move he has so far ruled out.

The CPI measures the change in prices of a range of typical goods and services purchased by UK households over a 12 month period, including housing and utilities, food and drink, transport, clothing, furniture and hospitality such as hotel rooms and restaurant spending. The consumer price indices are normally based on prices collected from outlets around the country, supplemented by information collected centrally over the internet and by phone.