Inflation in Britain rose the most in 30 years in January, to 5.5% from 5.4% in December.
Economists had predicted that inflation would remain unchanged at the level of December, but reached its highest level since March 1992.
Earlier in the month, the Bank of England revised upwards its inflation forecast, forecasting it to peak at 7.25% in April, when the 54% increase in household energy bills will take effect, pushing households hard.
The Bank of England does not expect inflation to return to 2% of the target by early 2024, although most economists believe that inflation will fall faster.
BoE has already raised interest rates twice since December, to 0.5% from 0.1%, and markets expect a further increase to 0.75% or 1% on March 17 after the next BoE meeting.
Higher energy prices have been the biggest single factor in pushing up British inflation, although supply chain pandemic problems have pushed up prices on many goods as well.
Source: Capital
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