Britain remains in the grips of a cost-of-living crisis as inflation stays at a near 30-year high, following rises in January. 

The Office for National Statistics (ONS) said Consumers Prices Index (CPI) inflation reached 5.5% in January seeing a 0.1% increase from December. 

ONS said the cost of clothes and footwear saw inflation rise higher last month and saw January have the lowest discount in shops since 1990. 

Across the economy inflation is soaring, as the CPI doubled the Bank Of England's 2% target and is expected to hit 7.25% in April, making it the highest level since August 1991. 

The ongoing rise in energy prices and fuel costs have also been a major factor for the rise in inflation, whilst food and drink prices also steadily rise. 

Grant Fitzner, chief economist at the ONS, said: “Clothing and footwear pushed inflation up this month and although there were still the traditional price drops, it was the smallest January fall since 1990, with fewer sales than last year.

“The rising costs of some household goods and increases in rents also pushed up inflation.

“However, these were partially offset by lower prices at the pump, following record highs at the end of 2021.”

Banks have also hiked interest rates earlier this month to a rise of 0.5%, seeing the first back-to-back increase since 2004.

The increase in inflation has become a warning over the worst hit to household finances in over 32 years, predicting disposable incomes, post-tax, and inflation which will fall by 2% in 2022.