Cost of living crisis in the UK — how to protect your investments, property, savings and pension from rising prices in 2022

Cost of living crisis in the UK — how to protect your investments, property, savings and pension from rising prices in 2022

Prices surged by 5.5pc in the 12 months to January as UK inflation hit its highest level in 30 years. Experts have predicted the cost of living crisis will deteriorate even further in the coming months. The Consumer Prices Index recorded its biggest increase since 1992 on the back of rising food, clothing and restaurant costs. This is well above the Bank of England's 2pc target , and higher than analysts had predicted. To combat soaring inflation, the central bank raised interest rates from 0.25 to 0.5pc in February . However, the rate rise will likely not be enough to bring down prices and a series of further increases are widely anticipated this year. How much of a risk is rising inflation, and how can you protect your finances? Telegraph Money has the answers. What is the cost of living crisis and how does it affect me? Inflation measures the rate of increase in the price of goods and services. The Consumer Prices Index, which forms the basis for the Government's inflation target, looks at the cost of hundreds of items, from food to cinema tickets, to track any rise or fall in costs. Inflation has already risen to 5.5pc