Inflation is in double digits for the first time in more than 40 years, grim new data has confirmed.
Consumer price index inflation rose to 10.1% in July, up from 9.4% in June, the Office for National Statistics said.
It’s the latest terrible news about the cost of living as Britain braces for a long, harsh winter.
The Bank of England expects the country to enter a recession if energy prices for households and businesses rise again.
Families face the greatest pressure on their standard of living in a generation as prices, bills, taxes and interest rates all rise.
The rise in inflation rates, which beat predictions to be at the higher end of 9%, was attributed to the rise in food prices and staples, including toilet rolls and toothbrushes.
It’s the biggest jump in the cost of living since February 1982, when the CPI hit 10.4%, according to ONS estimates.
The confirmation of rising prices comes as experts warn that energy prices, the main driver of inflation, may turn out to be even higher than previously thought.
Consulting firm Auxilione added nearly £200 to its previous estimate for the spring after further turbulence in the global market.
It predicted that Ofgem could set the price cap at a whopping £5,456 by April 2023.
The Bank predicts that changes in energy price ceilings could lead to inflation reaching more than 13% in the winter, after some modest declines in the coming months.
Commenting on the rise in inflation, Chancellor Nadhim Zahawi said: “I understand that times are difficult and people are concerned about price increases that countries around the world are facing.
“While there are no easy solutions, we are helping where we can through a £37bn bailout package, with further payments for the lowest income earners, retirees and disabled people, and £400 off energy bills for everyone in the coming months .
“Controlling inflation 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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