U.K. inflation rises at the fastest pace in 30 years

The U.K. faces what economists say will be the biggest drop in living standards since the mid-1950s

British consumer prices rose at the fastest pace in 30 years last month, fueled by soaring costs for household energy and motor fuels — the latest grim figures as inflation surges around the world.

Inflation in the United Kingdom accelerated to 7% in the 12 months through March, the highest annual rate since March 1992, the Office for National Statistics said Wednesday.

The U.K. faces what economists say will be the biggest drop in living standards since the mid-1950s as rocketing energy costs, rising food prices and tax increases overshadow higher wages.

People around the world are feeling the squeeze of inflation as demand rapidly bounced back from the COVID-19 pandemic and Russia's war in Ukraine further drove up energy costs and squeezed supply chains.

In the United States, consumer prices last month jumped 8.5% from a year earlier, the fastest pace in more than 40 years, the Labor Department said Tuesday. In the 19 European countries using the euro, inflation surged to 7.5% last month, the fifth consecutive month that it has hit a record high.

In the U.K., the toll of rising means disposable household incomes, adjusted for inflation, are expected to drop by 2.2% this year, according to the government's independent budget adviser.