Surging oil prices are set to prolong the squeeze on household incomes this year, with economists expecting inflation to fall only gradually from its recent peak. The cost of a barrel of Brent crude shot above $70 late last week, the first time it has reached such levels since the oil price crash in 2014. Consumers are already feeling the effects at the petrol pumps, where the average price of a litre of fuel is up 5p at 121.27p, according to the RAC. Inflation is forecast to fall for the first time since June when the latest figures are published this week. However, prices may rise faster than wages for much of this year as costlier oil feeds through to a wide range of goods,…

Source: The Times January 14, 2018 00:05 UTC