London, 16 Feb (ONA) —- British inflation has remained at a near 30-year high after rising further in January as the country remains in the grip of a tightening cost-of-living squeeze, according to official figures.
The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation reached 5.5% in January, up from 5.4% in December and remaining at the highest level since March 1992, when it stood at 7.1%.
The ONS said the cost of clothes and footwear pushed inflation higher last month, with the lowest January discounts in shops since 1990.
But inflation is soaring across the economy, driving CPI up to more than double the Bank of England’s 2% target.
Rising energy prices and fuel costs have been the biggest factors in driving inflation up to near 30-year highs, though food and drink prices and many everyday essentials have also been on the rise.
The bank hiked interest rates earlier this month to 0.5% in the first back-to-back increase since 2004, signalling more are on the way as it looks to rein in rampant inflation.
It is forecasting that inflation will soar further due to painful energy price rises before peaking at 7.25% in April – the highest level since August 1991.