Cost of living continues to bite as inflation rises to 5.5%

"The first inflation figures of 2022 show why this is going to be the year of the squeeze. Price rises are already starting to bite, and these inflation figures don’t include the sharp rise in the energy price cap, taking effect from April. As inflation rises, the cost of living continues to increase, with many households feeling an even tighter squeeze on their budgets.

“We know that an increasing number of people are worried about being able to afford their household bills and food costs and, sadly, today’s figures will do nothing to reassure them.

“For those on state benefits, the gap between inflation and September’s rate of 3.1%, used for uprating benefits in April is growing ever wider.

“Interest rates are now at 0.5%, and while interest rates on best buy easy access accounts have started to creep up, they’re nowhere near inflation rates. So, savers, especially those who rely on savings for their income, will see the value of their money eaten away by rises in the cost of living. Even those who lock their money away in five-year bonds will only earn a little over 2% if they’re with a best-buy provider.”

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