Food prices push inflation figure to 10.1%

UK inflation rose to 10.1% in September – a return to July’s 40-year high.

The latest rate is marginally higher than city analysts were predicting and has been driven by rising food and non-alcoholic drink prices, according to official figures from the Office of National Statistics.

Food and non-alcoholic drink prices soared by 14.1% in the 12 months to September – ahead of August’s figure of 13.1%.

Bread and cereals, meat products and milk, cheese and eggs saw the steepest price climbs. However, a further decline in petrol and diesel prices saved the inflation rate from being even higher.

Chancellor Jeremy Hunt said: “I understand that families across the country are struggling with rising prices and higher energy bills.

“This government will prioritise help for the most vulnerable while delivering wider economic stability and driving long-term growth that will help everyone.

“We have acted decisively to protect households and businesses from significant rises in their energy bills this winter, with the government’s energy price guarantee holding down peak inflation.”