The Bank of England raised interest rates back in November but is not expected to raise them further despite the rise in inflation.
Economists believe inflation should be at its peak now and doubt any further movement; though price rises may only decline slowly in the coming months.
This pick-up in inflation has come at a bad time for retailers, who are already struggling with financially strained shoppers.
Richard Lim at Retail Economics acknowledged that the cost of living has become “uncomfortably high” for shoppers, and is concerned that this rise in inflation will force consumers to cut their spending even further.
The recent Black Friday discount holiday back in November was a disappointment for most retailers who found a decline in shoppers than the year before.
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