Well not a surprise, I suppose.
I'm Ok though I'm wealthy, so will hardly notice it.
And for those who have caused it, let's just say the best lessons are those learnt at first hand
From the Times today :
"Consumers should brace themselves for a sharp rise in the price of everyday goods in the coming weeks as retailers’ hedging contracts against a fall in the pound come to an end, analysts warn.
About 75 per cent of the currency hedges put in place by retailers and wholesalers, which offer short-term insurance against swings in sterling, had expired by the end of last year, according to World First.
The foreign exchange company said that many of the UK’s importers signed hedging contracts shortly before the referendum because of fears that the value of the pound would experience sharp volatility.
The survey was based on the company’s clients, but Jeremy Cook, chief economist at World First, said he would be surprised if it did not apply widely.
He added: “We are starting to see people saying, ‘We didn’t protect ourselves nearly as much as we wanted to or should have done’, and now they are having to go back to customers and say, ‘Well, it’s 16 per cent or even 20 per cent more now than it was last year.’ ”
The annual rate of inflation jumped to 1.8 per cent in the year to January, according to the Office for National Statistics, up from 1.6 per cent in December and the highest level since June 2014. Mr Cook believes that the sudden end of hedging contracts for many companies would lead to a rise.
He said: “We are only just at the beginning of the pick-up of inflation. We think it could hit 3.5 per cent by the end of the year. Retailers couldn’t put prices up at Christmas but will now be having a fairly frank conversation with customers.”
Concerns about higher inflation stem from the sharp fall in the value of the pound against other currencies since Britain voted to leave the EU. A weaker pound drives up the cost of imports such as food and fuel.
The potential rise in the cost of goods is a concern for the government because it is likely to start squeezing living standards. Economists also believe that the rate of inflation will be close to 3 per cent by the end of this year, which would leave households worse off in real terms as their pay will not rise at the same rate.
Households have been largely protected against the fall in the pound, with inflation being affected more by a rise in petrol prices and food prices not falling as greatly as last year.
The price of oil has risen sharply over the past year, from $33 a barrel to about $55 today. The average price for petrol at the pump is £1.20 and £1.22 for diesel. One retailer said petrol sales had “fallen off a cliff” last month as a result.
Prices charged at the factory gate for manufactured goods rose by 3.5 per cent in the year to January, the largest increase since January 2012."