Britain's inflation rate rose at an annual rate of 5.5 per cent in January, taking prices to a fresh 30-year high and pushing living costs up further for households already struggling with higher energy bills and interest rates.
Inflation was up from December's rate of 5.4 per cent, driven by higher clothing and footwear prices, according to the Office for National Statistics, with the Bank of England expecting inflation to hit 7.25 per cent in April — more than triple its 2 per cent target — when a 54 per cent surge in energy bills and higher taxes take effect.
Rising prices for fuel, second-hand cars and increased tobacco duty also helped to drive up inflation in January.
“The rising costs of some household goods and increases in rents also pushed up inflation. However, these were partially offset by lower prices at the pump, following record highs at the end of 2021,” said ONS Chief Economist Grant Fitzner.
Inflation, which has rocketed from just 0.4 per cent a year ago, has overshot forecasts in seven out of the past nine months, with the latest figures along with buoyant employment data this week strengthening the case for the BoE to raise interest rates by 50 basis points next month, an unprecedented move since it gained independence in 1997.
Laith Khalaf, head of investment analysis at AJ Bell, said inflation is here to stay and is on track to tip over 7 per cent in April, heaping even more pressure on consumers, businesses and savers.
“The elevated figures we are seeing today are effectively sunk costs, reflecting prices rises which have already happened, but what’s just as concerning is there’s more inflationary pressure to come,” said Mr Khalaf.
“The BoE expects inflation of over 5 per cent in the next year, and on top of the 5.5 per cent we’ve just witnessed, that adds up to a double digit hit to consumer purses in just two years.”
ONS data released on Tuesday showed British living standards declined at the fastest pace in almost eight years in December, as average pay increases rose less than the increase in consumer prices.
The squeeze on living standards will only worsen in April when the energy price cap — the maximum suppliers are allowed to charge in a year — goes up by £693 ($938), at the same time as a National Insurance increase of 1.25 per cent begins.
Chancellor of the Exchequer Rishi Sunak said the government understands the pressures people are facing with the cost of living, but insisted the situation was caused by “global challenges".
“We have listened to people’s concerns and recently stepped in to provide millions of households with up to £350 to help with rising energy bills,” Mr Sunak.
“We’re also helping people on the lowest incomes keep more of what they earn by cutting the Universal Credit taper rate, and freezing … fuel duties to keep costs down. In total we’re providing support with the cost of living worth over £20 billion across this financial year and next.”
However, analysts fear this may not go far enough to ease the pressure on household budgets.
“With every confirmation of the inexorable increase in price rises, it becomes harder for families to see beyond getting through the next week, never mind the next few years,” said Becky O’Connor, head of pensions and savings at interactive investor.
“Surviving the here and now makes future-proofing harder. Life plans are being put on hold as daily living costs increasingly suck up earnings and benefits. For many, there is little if anything left to play or plan with.”
Alpesh Paleja, lead economist at business organisation CBI, said while the government's move to moderate the impact of energy price rises on the most vulnerable was encouraging, the squeeze on household budgets is expected to weigh on economic growth.
“Looking beyond the near term, it’s clear that the UK is caught in a low growth trap, and the only way to get out is a relentless focus on productivity. Measures like a 100 per cent permanent investment deduction and a future-focused approach to regulation and skills are vital to help us avoid another lost decade of growth,” Mr Paleja said.
“Enhancing the economy’s growth potential is the only way to withstand future inflationary shocks and deliver a sustained boost to living standards.”
Meanwhile, Dawood Pervez, managing director of Bestway Wholesale, the UK’s largest independent cash and carry that works with 70,000 retailers, said the year ahead would be “tough” for his business and also difficult for retailers who would inevitably pass on extra costs to consumers.
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Sheer grandeur
The Owo building is 14 storeys high, seven of which are below ground, with the 30,000 square feet of amenities located subterranean, including a 16-seat private cinema, seven lounges, a gym, games room, treatment suites and bicycle storage.
A clear distinction between the residences and the Raffles hotel with the amenities operated separately.
RESULT
Manchester United 2 Burnley 2
Man United: Lingard (53', 90' 1)
Burnley: Barnes (3'), Defour (36')
Man of the Match: Jesse Lingard (Manchester United)
Federer's 11 Wimbledon finals
2003 Beat Mark Philippoussis
2004 Beat Andy Roddick
2005 Beat Andy Roddick
2006 Beat Rafael Nadal
2007 Beat Rafael Nadal
2008 Lost to Rafael Nadal
2009 Beat Andy Roddick
2012 Beat Andy Murray
2014 Lost to Novak Djokovic
2015 Lost to Novak Djokovic
2017 Beat Marin Cilic
Where to buy
Limited-edition art prints of The Sofa Series: Sultani can be acquired from Reem El Mutwalli at www.reemelmutwalli.com
Formula One top 10 drivers' standings after Japan
1. Lewis Hamilton, Mercedes 306
2. Sebastian Vettel, Ferrari 247
3. Valtteri Bottas, Mercedes 234
4. Daniel Ricciardo, Red Bull 192
5. Kimi Raikkonen, Ferrari 148
6. Max Verstappen, Red Bull 111
7. Sergio Perez, Force India 82
8. Esteban Ocon, Force India 65
9. Carlos Sainz Jr, Toro Rosso 48
10. Nico Hulkenberg, Renault 34
Normcore explained
Something of a fashion anomaly, normcore is essentially a celebration of the unremarkable. The term was first popularised by an article in New York magazine in 2014 and has been dubbed “ugly”, “bland’ and "anti-style" by fashion writers. It’s hallmarks are comfort, a lack of pretentiousness and neutrality – it is a trend for those who would rather not stand out from the crowd. For the most part, the style is unisex, favouring loose silhouettes, thrift-shop threads, baseball caps and boyish trainers. It is important to note that normcore is not synonymous with cheapness or low quality; there are high-fashion brands, including Parisian label Vetements, that specialise in this style. Embraced by fashion-forward street-style stars around the globe, it’s uptake in the UAE has been relatively slow.
Killing of Qassem Suleimani
Salah in numbers
€39 million: Liverpool agreed a fee, including add-ons, in the region of €39m (nearly Dh176m) to sign Salah from Roma last year. The exchange rate at the time meant that cost the Reds £34.3m - a bargain given his performances since.
13: The 25-year-old player was not a complete stranger to the Premier League when he arrived at Liverpool this summer. However, during his previous stint at Chelsea, he made just 13 Premier League appearances, seven of which were off the bench, and scored only twice.
57: It was in the 57th minute of his Liverpool bow when Salah opened his account for the Reds in the 3-3 draw with Watford back in August. The Egyptian prodded the ball over the line from close range after latching onto Roberto Firmino's attempted lob.
7: Salah's best scoring streak of the season occurred between an FA Cup tie against West Brom on January 27 and a Premier League win over Newcastle on March 3. He scored for seven games running in all competitions and struck twice against Tottenham.
3: This season Salah became the first player in Premier League history to win the player of the month award three times during a term. He was voted as the division's best player in November, February and March.
40: Salah joined Roger Hunt and Ian Rush as the only players in Liverpool's history to have scored 40 times in a single season when he headed home against Bournemouth at Anfield earlier this month.
30: The goal against Bournemouth ensured the Egyptian achieved another milestone in becoming the first African player to score 30 times across one Premier League campaign.
8: As well as his fine form in England, Salah has also scored eight times in the tournament phase of this season's Champions League. Only Real Madrid's Cristiano Ronaldo, with 15 to his credit, has found the net more often in the group stages and knockout rounds of Europe's premier club competition.
Mia Man’s tips for fermentation
- Start with a simple recipe such as yogurt or sauerkraut
- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.
- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.
- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.
Result
UAE (S. Tagliabue 90 1') 1-2 Uzbekistan (Shokhruz Norkhonov 48', 86')
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
The specs: 2017 Dodge Ram 1500 Laramie Longhorn
Price, base / as tested: Dhxxx
Engine: 5.7L V8
Transmission: Eight-speed automatic
Power: 395hp @ 5,600rpm
Torque: 556Nm @ 3,950rpm
Fuel economy, combined: 12.7L / 100km
