UK inflation rises to highest level in almost 30 years at 5.4%

Cost of living crisis worsens, piling pressure on Bank of England to raise interest rates again

Britain's cost of living crisis worsened in December after inflation jumped to 5.4% - its highest level in almost 30 years - driven by the higher cost of clothes, food and footwear.

Heaping further pressure on Bank of England policymakers to raise interest rates when they meet next month, the price of furniture and eating out also increased as shortages of staff pushed up wage costs and hold-ups at UK ports hiked the cost of imports.