Cost of living rises at fastest pace for 30 years

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The UK's cost of living surged by 5.4% in the 12 months to December, its highest rate of increase for 30 years.

The Consumer Prices Index measure of inflation rose from 5.1% in November, said the Office for National Statistics (ONS), driven by housing and transport.

The rate continues to be well above the Bank of England's 2% inflation target.

Separate ONS figures issued on Tuesday showed that average pay rises are failing to keep up with the rise in the cost of living.

Regular pay, excluding bonuses and adjusted for inflation, fell 1% in November compared to the same month in the previous year.