LONDON (Reuters] – The British consumer price indexes rose by the fastest pace for nearly thirty years as inflation reached 5.5% in December, up from 5.4% in December, according to the Office for National Statistics.

Reuters polled economists and they predicted that inflation would be stable at December’s pace, however it edged upwards to the highest level since March 1992.

Inflation forecasts were revised by the Bank of England earlier in March to show that inflation will reach 7.25% at its peak in April. That is when household bills are regulated and there has been a 54% jump in energy bills.

Although the British central bank doesn’t expect inflation to reach its target of 2% until 2024 early, most economists believe it will drop faster.

After raising interest rates two times in December, the BoE increased rates to 0.5% and 0.1% respectively. The financial markets are expecting a second rate hike to 0.75% on March 17, after the BoE’s next meeting.

While higher energy prices are the main factor driving up British inflation, global supply-chain issues and pandemics have also contributed to the rise in other goods’ prices.

Grant Fitzner (ONS chief economist) stated, “Clothing & footwear drove inflation up this month”