Britain's Consumer Prices Index (CPI) rose by 5.4 percent in the 12 months to December 2021, reaching its highest level since 1992, the country's Office for National Statistics (ONS) said Wednesday.

 

Inflation rose in December mainly due to price hikes for food and non-alcoholic beverages, restaurants and hotels, furniture and household goods, and clothing and footwear. However, this was partially offset by large downward contributions from to change transport, and recreation and culture, said the ONS in a report.

 

"Food prices again grew strongly, while increases in furniture and clothing also pushed up annual inflation," said Grant Fitzner, chief economist at the ONS. "These large rises were slightly offset by petrol prices, which despite being at record levels were stable this month, but rose this time last year."

 

"The closures in the economy last year have impacted some items but, overall, this effect on the headline rate of inflation is negligible," Fitzner added.

 

Amid soaring inflation, pressure mounted for the Bank of England to raise interest rates. Samuel Tombs, an economist at research consultancy Pantheon Macroeconomics, said the December data left the central bank "little choice but to hike rates again in February."