Sky high

Why Britain’s inflation is soaring higher than all the other G7 nations

- GRAHAM HISCOTT

HOUSEHOLDS across the UK will be hit with the biggest rise in living costs of any major economy this year, forecasts claimed yesterday.

Inflation is tipped to average 6.9% as it takes longer to come down here than in any other G7 nation, according to the Organisation for Economic Cooperation and Development.

One reason is the impact of wholesale energy prices because, despite our North Sea oil and gas reserves, the UK is still heavily reliant on imports.

Critics blame successive governments for failing to invest taxes from North Sea production into Britain's future energy needs including storage, which we are now severely lacking.

Worker shortages and their impact on wages have also fed into higher inflation.

But the OECD also singled out the impact of soaring food costs, now the biggest headache for millions of households.

Recent Office for National Statistics data showed food and soft drink inflation stood at 19% in April a near 45-year high.

Again, imports are a big issue.