Rishi Sunak responds to inflation spike

The UK Consumer Price Index (CPI), the most common measure of year-on-year inflation, hit a new 30-year high of 6.2% for February. This 0.8% increase was the largest monthly jump between January and February since 2009. The UK Chancellor responded today, in his spring statement, revealing income tax would be cut and the National Insurance threshold will be increased by £3000 to £12,570 in a bid to help households weather the storm. The National Insurance changes will come into effect for July, saving £30mn people £330 per year but the income tax basic rate reduction from 20% to 19% will not come into effect until 2024. Energy and environment groups hit back suggesting the majority of households need more relief to shoulder unprecedented rises in energy bills so far this year.