The UK has witnessed an increase in interest rates for the second time in three months as the Bank of England tries to arrest a rapid rise in the cost of living.

The hike to 0.5 percent from 0.25 percent came as the Bank warned prices would remain at a 30-year high for the rest of the year.

Prices are expected to climb faster than pay, putting the biggest squeeze on household finances in decades.

It comes as the chancellor unveiled a support package to help households cope with a 54 percent jump in energy bills.

Readers Bureau

Edited by Jesus Chan

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