Displaying items by tag: household pressures

UK inflation has risen for the first time in five months, increasing to 3.4% in the year to December. The rise, though higher than expected, is widely attributed to temporary factors rather than a sustained upward trend. The Office for National Statistics said higher airfares over the Christmas and New Year period were a major contributor, alongside increased tobacco prices following a Budget tax rise. Food prices also edged up, notably for bread, cereals, and vegetables, adding pressure on household budgets. Despite the increase, analysts believe inflation is likely to fall again in the coming months. The Bank of England, which ended 2025 by cutting interest rates to 3.75%, is expected to proceed cautiously when it meets in February, with gradual cuts anticipated later in the year. The Government says reducing the cost of living remains a priority, while critics blame high taxes and borrowing for continued pressure on families. Compared with European neighbours, UK inflation remains relatively high, though forecasts suggest a decline is likely soon.