The rate of inflation hit a 30-year high of 7% in March reflecting, for the first time, the immediate effects of Russia’s invasion of Ukraine.
City economists had forecast a rate of 6.7%. Further increases are expected as the impact of the war in Ukraine drives up the cost of energy and raw materials, with households likely to feel the squeeze from higher gas and electricity bills.
The Bank of England (BoE) has warned inflation is on track to reach 8% this month and could peak close to 10% later this year, the highest rate in four decades.
While the BoE has signalled that further interest rate rises to curb expectations of higher inflation are less likely in the coming months because of the risk they choke off economic growth the figures.
Dr Jackie Mulligan, expert on the Government’s High Streets Task Force and founder of the local shopping platform, Shopappy, said: “With inflation at 7%, households, families and small high street businesses are being hit for six.
“This obscene level of inflation is a double whammy for the family businesses that line the UK’s high streets.
“They’re being hit in the tills and in their own pockets at the exact same time. For now, many are resisting raising prices but at some point something will have to give.
“Our message to consumers is, if you have less to spend, spend it wisely, not with the online giants but with the local businesses that are the bedrock of your communities.
“Right now, they are depending on your custom more than ever.”
Yesterday the fed in the US released their inflation figures which came in at a hefty 8.5%.
