Cost of living hits highest level for nearly 30 years

The cost of living rose at its fastest pace in nearly 30 years in the 12 months to December, driven mainly by higher food and energy bills. The UK's Consumer Prices Index measure of inflation rose to 5.4% from 5.1% in November, the Office for National Statistics said. The BBC’s Consumer Affairs Correspondent Colletta Smith visited the Crescent Hotel in Scarborough and spoke to the owner, Sadie Shard about the rise in running costs. Today’s Martha Kearney speaks to Richard Walker, the managing director of Iceland, and Sir Charlie Bean, the former deputy governor of the Bank of England. (Image Credit: Press Association)