UK Inflation at 5.5% in January, Fastest in 30 Years

The rise in energy bills had fed into the U.K.’s consumer prices in January, pushing inflation to its highest pace in three decades and weighing on the country’s living standards.

The consumer price index (CPI) went up for the 13th consecutive month to 5.5 percent in January, driven by an increase in prices for clothing, footwear and furniture, according to the latest data from the Office for National Statistics (ONS).

The rate was the highest since March 1992 when inflation was at 7.4 percent, ONS said, edging up from 5.4 percent in December.

Inflation is predicted to hit more than 7 percent in April after an increase in the government’s energy price cap takes effect. The Bank of England has raised interest rates twice in the past two months in response to surging prices, and is expected to hike again next month.

In a separate report on Tuesday, the ONS found that wages in the U.K. has failed to keep pace with inflation, putting Britain on track to a major squeeze in living standards.

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