First, the bad news. UK consumer price inflation has already hit 5.1pc in the 12 months to November. And it is likely to rise further in the coming months as businesses pass on more of the price pressure that is already in the pipeline.
In particular, the energy regulator Ofgem is reviewing its cap on domestic gas and electricity bills. The surge in global energy prices means that this cap could be increased by as much as 50pc in April, taking headline inflation as high as 7pc.
With underlying pay growth probably averaging about 4pc, this implies that real wages (after allowing for inflation) could be squeezed by as much as 3pc.
April is shaping up to be the “cruellest month” for other reasons too. This is the month when the planned increase of 1.25 percentage points in National Insurance Contributions (NICs) kicks in, as well as other changes including…
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Utopia, you are standing in it! 
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