U.K. inflation rockets as the Chancellor prepares for his budget

LONDON (Mar 23)  U.K. inflation hit 6.2% for the February reading which is the highest level in three decades. The public have been noticing the squeeze in wallets as fuel, energy and food costs surged. Key factors in the change from January to February were soaring costs for "a variety of recreational and cultural goods and services (principally games, toys and hobbies), and clothing and footwear", the ONS added.

ONS chief economist Grant Fitzner said: "Inflation rose steeply in February as prices increased for a wide range of goods and services, for products as diverse as food to toys and games. He added "Clothing and footwear saw a return to traditional February price rises after last year's falls when many shops were closed. He also noted "Furniture and flooring also contributed to the rise in inflation as prices started to recover following new year sales. Lastly he said "The price of goods leaving U.K. factories has also been rising substantially and is now at its highest rate for 14 years."

In his spring statement U.K. Chancellor Sunak will announce his set-piece tax and spending update to the Commons on Wednesday (today), with expectations that additional support for households will be announced. Rachel Reeves the Shadow Chancellor said "As he heads into his spring statement, he can either choose an unfair tax rise on working people and business at the worst possible time. Or he can cancel his tax rise, and ease the cost of living hitting families by cutting energy bills by up to £600 through bringing in a one-off windfall tax on oil and gas producer profits,"

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