UK inflation has hit a 15-month high, driven in large part by hefty increases in energy and utility bills. The new figures take inflation to 5.4%, piling more pressure on households already squeezed by the cost of living.
The Office for National Statistics (ONS) said gas and electricity prices rose the most, with some paying close to double what they shelled out last year. It is because of persistent global energy supply disruption and UK domestic price policy change.
Food costs were also a factor, with staples such as milk, bread, and vegetables increasing in price. Rent and gasoline prices also headed in the same direction, putting the squeeze on everyday budgets.
In the last year, numerous UK residents have had to tighten their belts or use savings just to afford essentials. Some have moved to prepaid meters or cut back on heating during freezing winter months just to manage.
The government had launched energy bill support packages a few months back for low-income households. But with this new wave of inflation, new relief schemes or modification of the price cap are being demanded by most.
Meanwhile, the Bank of England finds itself under renewed pressure to raise interest rates again in an attempt to bring inflation back to heel. Economists warn that while rate increases could slow inflation, they can also harm borrowing and investment. The UK experienced similar price increases in late 2022 when energy markets destabilized with Russia’s invasion of Ukraine, causing worldwide supply disruption and panic buying in most nations. Although prices stabilized in mid-2023, the latest increase indicates that the situation is still volatile. In short, with inflation now at a 15-month high, UK residents are once again being forced to make some hard choices. With energy prices continuing to rise, many are fearing for the future unless something drastic happens.
