The biggest contributors to rising inflation have been rising fuel prices and energy bills, according to the National Statistics Office (ONS). The consumer price index (CPI) rose from 6.2% in February and was higher than expected, with economists forecasting 6.7%. Inflation remains at its highest level since March 1992, when it stood at 7.1%. The ONS noted that fuel prices were concentrated before the fuel tax was reduced by 5 p per liter – but recent reports indicate that it appears to have done little to reduce pump prices. Chancellor Risi Sunak said the rising costs were due to “global pressures on supply chains and energy markets that could be further exacerbated by Russian aggression in Ukraine”. Rising inflation will further fuel fears, in the wake of the 0.1% sluggish economic growth achieved in February, that the economy is in danger of a period of so-called stagnant inflation. This is due to the fact that the consumer price index (CPI) is estimated by experts to exceed 8.5% for the current month of April, when households were hit by an unprecedented increase in energy bills. Use the Chrome browser for a more accessible video player 3:06 Fuel poverty lurks for families The 54% increase in the energy price ceiling was set before Russia’s invasion of Ukraine in late February, but a jump in other war-related costs was included in March inflation data. Fuel costs were reaching record levels almost daily, as oil prices soared to levels not seen for 14 years, and a number of other commodities, such as wheat, contributed to the price pressures. While the Bank of England has pointed out that further rate hikes to curb expectations of higher inflation are less likely in the coming months because of the risk of stifling economic growth – there is further pressure on the chancellor. Rishi Sunak, who came under fire this month for his family’s tax affairs and later the partygate scandal, had already faced reactions to the Treasury Department’s response to the escalating cost-of-living crisis. There has been particular outrage among critics that last spring’s statement did not include new cash benefits for those with benefits, as the Office of Budget Responsibility predicted the biggest drop in living standards since the 1950s. Mr Sunak said: “I know this is a worrying time for many families, so we are taking action to lighten the burden by providing around 22 22 billion in support this fiscal year, including the most vulnerable through the Family Support Fund. . “We also help as many people as possible to work – the best way for families to be financially secure in the long run.”
