UK inflation hits 10.1% amid cost of living crisis
UK inflation has risen to 10.1%, adding to pressure on households amid the cost-of-living crisis.
The Consumer Prices Index (CPI) showed a further increase in July, up from 9.4% in June and remaining at the highest level since February 1982, the Office for National Statistics (ONS) said.
Households are expected to come under further pressure this autumn from a fresh rise in energy bills, which the Bank of England forecasts will drive inflation above 13% and trigger a long recession as families rein in their spending.
The biggest factors contributing to the rise in inflation came yet again from rising household energy prices, fuel and food and drinks which saw the biggest jump.
Food and non-alcoholic beverages saw an overall increase of 2.3% between June and July 2022, taking the division’s annual inflation rate to 12.7% in July 2022, up from 9.8% in June.
Grant Fitzner, ONS chief economist, said: “A wide range of price rises drove inflation up again this month. 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.”
