Millions of low income families will rightly worry this further drives up their living costs and drags down their living standards.
Responding to yesterday's figures Rebecca McDonald, Senior Economist for the independent Joseph Rowntree Foundation, said:
These figures confirm we are on the brink of colliding with the 7% inflation rate forecast for April by the Bank of England. Millions of low income families will rightly worry this further drives up their living costs and drags down their living standards.
Key drivers of this latest rate of 5.5% are transport and energy prices, reflecting the situation still months ahead from levels we expect to see come April when the new energy price cap comes into effect. But the poorly targeted method chosen by the Chancellor for his recent support package fell short of delivering what low income families will need to afford the essentials. This risks creating a debt now, more debt later' approach for the families already struggling the most.
At the same time inflation hits this 30 year high, out of work support is at a real-term 30 year low and come April all benefits will be uprated by only 3.1%, covering less than half of expected inflation. It's not right that this disparity will leave families on the lowest incomes grappling with impossible choices - the Government must act urgently to strengthen our increasingly inadequate social security system.