Inflation figures released this morning from the Office of National Statistics (ONS), show a rise from November's recent high of 5.1% to a near 30 year high of 5.4%.  Worryingly, it isn't just energy and fuel that's eroding our spending power.  Housing costs including food and furniture have moved higher. Key parts are still in short supply for motor manufacturers and the unavailability of new vehicles has kept the price of second hand cars and vans high. Hotels and restaurants have all moved their prices higher, just to survive the pandemic and there is a very real panic that when fixed energy prices come to an end in March , the increased cost to consumers will be punishing. This is at a time when the income from the average household has not matched the additional expenses coming at them, left right and centre.

Interest rates are only going higher now, probably with a near monthly series of ¼ pct hikes as the Bank of England tries to reverse the upward inflationary trend.