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The cost of living in the UK rose at its fastest pace in nearly 30 years in the 12 months to December, driven mainly by higher food and energy bills, BBC News reports.

The UK's Consumer Prices Index measure of inflation rose to 5.4% from 5.1% in November, the Office for National Statistics (ONS) said.

The last time inflation was higher was in March 1992, when it was 7.1%.

And with gas and electricity costs set to increase further soon, some analysts think it could reach that level again.

Increases in prices of furniture and clothing also contributed to December's rise in the cost of living.

"These large rises were slightly offset by petrol prices, which despite being at record levels were stable this month, but rose this time last year," said ONS chief economist Grant Fitzner.

The rate continues to be well above the Bank of England's 2% inflation target.