On the go: Inflation hit another record in February, piling the pressure on the chancellor to address the soaring cost of living in his Spring Statement on March 23.
The consumer price index rose by 6.2 per cent in the 12 months to February this year, an increase from the 5.5 per cent jump in January, according to the Office for National Statistics.
The bump in prices has been driven by the increasing cost of energy and transport, and the jump last month was specifically driven by rises in the price of games, toys, clothing and footwear.
The increase will pile more pressure on chancellor Rishi Sunak to combat the cost of living crisis, which has been exacerbated in the past month due to Russia’s invasion of Ukraine.
The Bank of England has now missed its 2 per cent target inflation rate since May last year, and it raised interest rates on March 17 to 0.75 per cent in an attempt to curb rising prices.
Tom Birkin, actuarial consultant at XPS Pensions Group, said: “The impact of soaring inflation has been felt right across the pensions industry, with rising inflation expectations adding to schemes’ liabilities and creating challenges for trustees as they work towards long-term funding targets.
“It’s not all bad news for pension schemes, however, as the Bank of England’s recently announced hike in interest rates will have had a positive impact on liabilities and will work to counteract inflationary pressures to some extent.”
This article originally appeared on FTAdviser.com
