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UK inflation has hit a new 30-year high, intensifying the cost of living squeeze hitting households.
Consumer prices rose by 5.5% in the 12 months to January, data just released by the Office for National Statistics shows.
That’s the highest reading since March 1992 (when it stood at 7.1%), and up from 5.4% in December — even further above the Bank of England’s 2% inflation target.
The largest upward contributions to inflation over the last year was driven up by higher energy costs, and transport costs – due to pricier motor fuels and second-hand cars.
Clothing and footwear, housing and household services (including energy bills), and furniture and household goods prices all pushed up inflation in January, the ONS says.
The squeeze is set to escalate this spring, when the energy price cap is…