The rise in the cost of living shows no sign of abating as headline inflation hit 7% in March. The cost of fuel was the major factor in the increase, while several foodstuffs linked to Ukraine and Russia also contributed.

Unlike the slowdown seen in the U.S., the rise in core inflation also shows no sign of slowing down.

The rise in the headline figure eclipsed the expectations of analysts, who predicted that the rate would reach 6.7%.

Following the significant increase in household energy bills, inflation is on track to top out at 9% according to global banks Goldman Sachs and J.P. Morgan. That high is expected to be reached either this month or next, although there will be another spike when the energy cap is adjusted again in October.

With the economy slowing as evidenced by data released earlier in the week, stagflation is now being seen as a genuine possibility.

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