Rising prices is the big living standards story of 2017

The doubling of inflation in just four months shows that rising prices will be the big living standards story of 2017, the Resolution Foundation said today in response to the latest inflation figures.

CPI inflation increased from 0.9% in October 2016 to 1.8% in January 2017 – its highest level since June 2014.

CPIH, which will replace CPI as the main inflation measure next month, hit 2% – its highest level since October 2013.

Stephen Clarke, Economic Analyst at the Resolution Foundation, said:

“Two years of rapid jobs growth and ultra-low inflation have given a major boost to living standards.

“But the honeymoon of rock-bottom price rises is now over with inflation having doubled since October, and set to increase further in the coming months.

“Rapid jobs growth was the big positive story of the last few years. Rising prices will be the more challenging living standards story of this year.”