UK inflation hits 10.1%, driven by rising food and fuel prices |  Inflation

UK inflation hits 10.1%, driven by rising food and fuel prices | Inflation

UK inflation hits 10.1%, driven by rising food and fuel prices |  Inflation

Inflation in the UK has risen above 10% for the first time in 40 years, driven by rising food and fuel prices, as households come under mounting pressure from the cost of living crisis.

The Office for National Statistics said the consumer price index was up 10.1% in the year to July, up from 9.4% in June and entering double digits earlier than expected. The figure was last higher in February 1982.

The reading was higher than city economists’ 9.8% forecast as food and drink prices rose at their highest rates for more than a decade amid a broad inflationary burst in the economy.

The largest increases were in bakery, dairy, meat and vegetables, also reflected in higher takeout costs. Price increases for other commodities such as pet food, toilet rolls, toothbrushes and deodorants also pushed inflation to its highest level in four decades.

Driven by a summer rush, with travelers flocking to overcrowded UK airports, package holiday prices also rose, while airfares soared.

The latest figures will put new pressure on the government and conservative candidates for leadership as the cost of living rises.

Rachel Reeves, the shadow chancellor, said soaring prices left families worried about how to make ends meet ahead of a difficult winter. “People are concerned while the Tories are busy fighting and ignoring the magnitude of this crisis. Only Labor can give Britain the fresh start it needs,” she said.

Households are expected to come under further pressure this fall due to another surge in energy bills, which the Bank of England predicts will see inflation rise above 13% and create a protracted recession as families cut their spending. keep expenses in check.

The chancellor, Nadhim Zahawi, said getting inflation under control was his top priority, while the government would act to support needy families. “I understand that times are tough and people are concerned about price increases that countries around the world are facing.”

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