Britain's CPI rises to 30-year high

Photo taken on Jan. 17, 2022 shows a gas bill and some money in London, Britian. Soaring gas prices have sent shock waves through the British economy over the past months, putting up inflation and causing a cost-of-living crisis. (Xinhua/Li Ying)

Amid soaring inflation, pressure mounted for the Bank of England to raise interest rates. Samuel Tombs, an economist at research consultancy Pantheon Macroeconomics, said the December data left the central bank "little choice but to hike rates again in February."

LONDON, Jan. 19 (Xinhua) -- Britain's Consumer Prices Index (CPI) rose by 5.4 percent in the 12 months to December 2021, reaching its highest level since 1992, the country's Office for National Statistics (ONS) said Wednesday.

Inflation rose in December mainly due to price hikes for food and non-alcoholic beverages, restaurants and hotels, furniture and household goods, and clothing and footwear. However, this was partially offset by large downward contributions from to change transport, and recreation and culture, said the ONS in a report.

Photo taken on Nov. 24, 2021 shows milk shelves at a store in London, Britain. Consumers across Britain are expected to face higher prices and fewer choices for goods this Christmas season due to supply chain delays and soaring inflation. (Photo by Tim Ireland/Xinhua)

"Food prices again grew strongly, while increases in furniture and clothing also pushed up annual inflation," said Grant Fitzner, chief economist at the ONS. "These large rises were slightly offset by petrol prices, which despite being at record levels were stable this month, but rose this time last year."

"The closures in the economy last year have impacted some items but, overall, this effect on the headline rate of inflation is negligible," Fitzner added.

Amid soaring inflation, pressure mounted for the Bank of England to raise interest rates. Samuel Tombs, an economist at research consultancy Pantheon Macroeconomics, said the December data left the central bank "little choice but to hike rates again in February."

People with shopping bags walk on Regent Street in London, Britain, Nov. 24, 2021. Consumers across Britain are expected to face higher prices and fewer choices for goods this Christmas season due to supply chain delays and soaring inflation. (Photo by Tim Ireland/Xinhua)