Inflation hits another new 40-year UK high of 10.1% as cost of living crisis worsens
The rate has hit double figures for the first time in 40-years.
The Office for National Statistics (ONS) has confirmed today that UK inflation has hit double figures for the first time in 40-years as the rising cost of living crisis worsens.
As the rising cost of living crisis continues to make its impact felt across the country, it has been revealed this morning that the Consumer Prices Index (CPI) rose to 10.1% in the 12 months to July – which is up from 9.4% in June.
The figure remains at the highest level since February 1982, and it is also higher than the 9.8% figure which was expected by most economists.
This also makes in the 10 month in a row that the figure has risen.
Read more: Inflation hits new 40-year UK high of 9.4%
The ONS said that July’s inflation figure was largely driven by increased food costs, with annual inflation for these items now running at 12.7% – up from 9.8% in June – and it was fuelled largely by price rises for basics such as bread, milk, cheese, and eggs.
“A wide range of price rises drove inflation up again this month,” said Grant Fitzner – Chief Economist at the ONS.
“Food prices rose notably, particularly bakery products, dairy, meat and vegetables, which was also reflected in higher takeaway prices. Price rises in other staple items, such as pet food, toilet rolls, toothbrushes and deodorants also pushed up inflation in July.
“Driven by higher demand, the price for package holidays rose, after falling at the same time last year, while air fares also increased.
“The cost of both raw materials and goods leaving factories continued to rise, driven by the price of metals and food respectively.”
Official data also showed that Retail Price Index (RPI) inflation reached 12.3% in July, while the Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 8.8% in July, which is up from 8.2%.
“I understand that times are tough, and people are worried about increases in prices that countries around the world are facing,” Chancellor Nadhim Zahawi said in response to the hike in inflation.
“Although there are no easy solutions, we are helping where we can through a £37 billion support package, with further payments for those on the lowest incomes, pensioners and the disabled, and £400 off energy bills for everyone in the coming months.
“Getting inflation under control is my top priority, and we are taking action through strong, independent monetary policy, responsible tax and spending decisions, and reforms to boost productivity and growth.”
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