Rampant inflation undoes benefit of Sunak’s tax raid

The new inflation figures revealed that price rises are spreading through wide swathes of the economy, led by energy costs.

Diesel is up by a third in the past year with petrol close behind after Russia’s invasion of Ukraine sent oil prices spiralling upwards.

The cost of clothing also recorded the sharpest increase in ONS records dating back to the late 1980s, up more than a tenth. Food is 5.8pc more expensive now than in March 2021, with pasta up over 10pc, lamb almost 17pc, and margarine more than a third.

Richard Walker, managing director at Iceland, urged the Government to take “swift action” to help the country “make ends meet”.

He said: “These latest inflation figures show quite how serious the cost of living crisis has become.

“Whilst businesses know their customers better than anyone, they can’t be seen as an endless sponge to absorb the deficit presented by the cost of living crisis.”


From furniture to theatre tickets, the top ten prices going up 

By Louis Ashworth

Energy and fuel costs may be the standout victims, but prices are soaring across the board. Here are some products with the biggest price jumps over the past year, and why:

Diesel

Drivers of diesel cars will not be surprised to learn that paying for the fuel has become 33.1pc more expensive. Pump prices rose 22p per litre in March alone, says the RAC, breaking new records.

Second-hand cars

A semiconductor shortage is making new car stock less attainable and turning consumers’ attention to older models. This pushed prices up 31.1pc. AutoTrader says the sharpest increase has been in family cars, with the average asking price for a second-hand Renault Scenic up 51.4pc at £8,162.

Electricity

Energy prices have risen 27.9pc. This chunky gain may be the calm before the storm, however, given the price cap increase this month.

Furniture

Furniture costs 16.8pc more. Shoppers at Swedish homeware giant IKEA will have felt the pain after it increased the prices of some flatpack items, such as its Malm table by more than 50pc.

Cinemas/theatres

A trip to see The Batman, or a theatre performance, is now 13.9pc more expensive. Cineworld said its average ticket prices rose 32.3pc during 2021, to an average £8.88.

Transport

It costs 13.7pc more just to get around. Sea transport tickets have gone up an average of 18.5pc, and air travel by 15.4pc.

Hotels

Prices of accommodation services have risen 10.9pc as Britons bank on domestic holidaymaking. The starting price of a lodge retreat in Cumbria on one leading travel website is 22pc higher than this time last year.

Clothing

Buying clothes is now 10.8pc more expensive, on average. At high street stalwart Next, a regular fit long-sleeved Oxford shirt costs £25, versus £20 last April.

Books

Books will set you back 9.7pc more, on average, which could tip the price of a typical paperback past £9.99 for the first time.

Restaurants 

Eating out is burning a bigger hole in pockets, with bills up 6.9pc. Even cheap-and-cheerful options such as McDonald’s and Domino’s are planning price increases.

Food

If you opt to stay in and cook, food prices are also 6pc higher, with a particularly big jump for seafood. A nine-pack of Twixes from Tesco costs £1.50 – 16.7pc more than last April.

Alcohol

Alcoholic drinks and cigarettes cost 4.8pc more on average. A 75cl bottle of Casillero Del Diablo Cabernet Sauvignon from Tesco would set you back £7.50. Last April it was £6.

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