'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

Bank of England halts interest rate cuts amid ongoing inflation

Bank of England halts interest rate cuts amid ongoing inflation

As priced in by markets

Sorin Dojan
clock 20 March 2025 • 2 min read
More work needed to tackle inflation as BoE members warn of further market turmoil

More work needed to tackle inflation as BoE members warn of further market turmoil

BoE MPC members spoke at Treasury Committee hearing

Sorin Dojan
clock 06 March 2025 • 2 min read
Trump's presidency and tariffs: Advice industry shares views

Trump's presidency and tariffs: Advice industry shares views

‘Stark raving mad’ but ‘great’ for US firms

Isabel Baxter
clock 18 February 2025 • 4 min read