In numbers: what is fuelling Britain’s cost of living crisis?

theguardian.com:

The government is under mounting pressure to tackle Britain’s worsening cost of living crisis, with inflation at the highest rate for 30 years and a record increase in household energy bills expected from April.

Here are six charts highlighting the scale of the challenge as the squeeze hits the poorest households hardest.

Inflation as measured by the official consumer prices index (CPI) jumped to 5.4% in December, the highest rate since March 1992. However, the Bank of England has said the official gauge for the annual increase in living costs is expected to rise further still, with a peak close to 6% expected by April. Some economists have warned that inflation could rise further and remain higher for longer than expected.

The increase reflects a snapback in demand for goods and services after lockdown, when prices fell sharply, as well as the impact from supply chain disruption due to Covid-19 hitting factory production and global trade.

Advanced economies around the world are dealing with similar problems, though the UK has added disruption from Brexit. Most economists expect inflation to ease as Covid disruption abates, although there are warnings of persistently higher rates than in the past.

Prices are rising at similar rates for richer and poorer households, according to official figures. However, household income levels influence personal experiences of inflation – an issue raised by the food and poverty campaigner Jack Monroe.

Poorer households find it harder to cope with similar rates of inflation to richer families as essentials, such as energy and food, form a larger proportion of their shopping basket than discretionary items. According to the Resolution Foundation, on average the lowest-income families spend