There was plenty for Rishi Sunak to ponder in the latest inflation data, which showed that prices rose at 6.2% in February – their fastest pace in 30 years.
The Chancellor, preparing for his Spring Statement around 12.30 pm Wednesday, was already under pressure to provide relief for families hit by soaring household bills.
The monthly cost of living update, which could be a staging point for inflation rates of 8%-10%, will provide further ammunition to critics who say the government is not doing enough to support those in financial jeopardy.
As expected, fuel, energy and food costs soared.
“The UK inflation reading for February is a bit like testing the temperature of a hot bath before a few more kettles of boiling water are poured in,” said Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown.
She added: “This is before the commodity chaos unleashed by the invasion of Ukraine fully shows up in the figures, so the expectation is that with inflation becoming hotter, the Bank of England will try and turn on the cold taps by raising rates more assertively.”
The print was slightly higher than expected, but not so ahead of forecast that the markets were inclined to panic. The FTSE 100 opened the day in the green.