'Back to the nineties': Industry reacts as UK inflation reaches 30-year high

Inflation at highest level since March 1992

Lauren Mason
clock • 4 min read

The UK’s Consumer Price Index rose 20 basis points above expectations to 5.4% in the 12 months to December 2021, according to the Office for National Statistics, reaching its highest level since March 1992.

The largest contributors to the 12-month uptick came from housing and household services, and transport, which rose by 1.31 and 1.29 percentage points respectively. On a monthly basis, CPI rose by 0.5% between November and December, compared to a monthly rise of 0.3% in December's data. Alan Custis, managing director and UK equity portfolio manager at Lazard Asset Management, said the view that the current high readings are transitory "is starting to sound a bit hollow". "With the employment data from yesterday proving to be surprisingly strong, wage growth seems to be being baked ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Fahad Hassan: When good news becomes an inflation problem

Fahad Hassan: When good news becomes an inflation problem

'Markets have been adjusting to the risks through valuations all year'

Fahad Hassan
clock 29 September 2026 • 6 min read
Healey promises 'new age of industrialisation' ahead of Budget

Healey promises 'new age of industrialisation' ahead of Budget

Keeps quiet on personal taxation, pensions or savings at Labour’s conference

Isabel Baxter
clock 28 September 2026 • 2 min read
MPs warn policymakers to stop using OBR as scapegoat for tough fiscal decisions

MPs warn policymakers to stop using OBR as scapegoat for tough fiscal decisions

Treasury Committee report

clock 23 September 2026 • 2 min read