Family budgets squeezed as VAT rise sends inflation soaring to 14-month high of 3.5%

Daily Mail
"Families and savers are facing a massive squeeze on their finances after inflation soared beyond its official target last month.The official Consumer Price Index(CPI) inflation measure has seen a record two month increase from 1.9 per cent in November to 3.5 per cent in January - the highest figure in 14 months.At the same time the Retail Prices Index (RPI) inflation, which includes the cost of mortgages and housing, has also rocketed from 2.1per cent to 3.7per cent.The figures mean that families already struggling to pay the bills as wages fall are being hit with huge increases on food essentials compared to January last year."