UK inflation: now it's the pound in your pocket being devalued
by Phillip Inman Economics correspondent from on (#296AK)
The two-year window in which pay rises briefly outstripped inflation is well and truly over. Time to brace for higher prices and static wages
Inflation is about to do at home what currency movements have done to your holiday money abroad - devalue the pound in your pocket.
Rising air fares, more expensive food and a bump in the cost of fuel at the pumps pushed inflation to 1.6% in December, effectively ending a brief two-year period when wages outstripped price rises by a wide margin.
Related: UK inflation hits two-year high at 1.6%
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