Fresh inflation misery expected as cost of living pressures intensify

Inflation is likely to have nudged higher when official figures are released later this week amid a flurry of economic data.

Household and business budgets are being squeezed by record high rates of inflation and rising interest rates. Picture: Jon Savage
Household and business budgets are being squeezed by record high rates of inflation and rising interest rates. Picture: Jon Savage

With the debate around the cost of living intensifying, all eyes will be on the Office for National Statistics when it releases inflation numbers for January this Wednesday.

The consumer price index hit an annual rate of 5.4 per cent in December, marking its fastest rate of increase since spring 1992, with the measure forecast to peak above 7 per cent over the coming months as higher energy costs feed through.

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Key measures on unemployment, wage growth and consumer confidence are also due out this week.

AJ Bell financial analyst Danni Hewson noted: “Inflation is the topic that just refuses to go away, much as the Bank of England and the government would like it to do so, and [this] week features the big double-header of jobs and wage data on Tuesday 15 and inflation on Wednesday 16.

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