UK inflation has economy in 'chokehold' with peak yet to come

30-year high

clock • 4 min read

As UK inflation hit a 30-year high of 5.5% in January, analysts have warned that it has the economy in a “chokehold”, with the peak yet to come.

According to the latest data from the Office for National Statistics, the 12-month UK Consumer Price Index was at its highest level since records began in January 1997. The last time it was higher than current levels was in March 1992 when it stood at 7.1%, based on historic modelling. Laith Khalaf, head of investment analysis at AJ Bell, said: "Inflation is building and is now expected to reach a crescendo of over 7% in April, heaping pressure on consumers, businesses and savers." Although the Bank of England, which is expected to continue increasing interest rates on the back of bet...

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