UK inflation hits near 30-year high, pressuring BoE and households

Inflation in Britain rose faster than expected to a near 30-year high in December, intensifying a squeeze on living standards and putting pressure on the Bank of England to raise interest rates again.
 
The annual rate of consumer price inflation increased to 5.4% from November's 5.1%, the highest since March 1992, the Office for National Statistics said. Economists polled by Reuters had expected a rise to 5.2%.
 
Financial markets now price in a more than 90% chance that the BoE will raise its main interest rate to 0.5% on February 3.