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

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

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

Inflation in the UK rose above 10% for the first time in 40 years, driven by soaring food and fuel prices as households came under increasing pressure from the cost of living crisis.

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

The reading was above city economists’ forecast of 9.8%, as food and drink prices rose at the highest rates in more than a decade amid a widespread inflationary spurt across the country. ‘economy.

The largest increases occurred for bakery products, dairy products, meat and vegetables, which also translated into higher costs for take-out food. Rising prices for other basic items such as pet food, toilet rolls, toothbrushes and deodorant also pushed inflation to the highest rate in four decades.

Driven by a summer rush, with travelers flocking to packed airports across the UK, prices for package holidays have also risen, while air fares have risen.

The latest figures will put renewed pressure on the government and Conservative leadership candidates as the cost of living crisis intensifies.

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

Households are set to come under further pressure this autumn from a further rise in energy bills, which the Bank of England predicts will push inflation above 13% and trigger a long recession, families controlling their expenses.

Chancellor Nadhim Zahawi said controlling inflation was his top priority as the government moved to support struggling families. “I understand that times are tough and people are worried about the price increases that countries around the world are facing.”

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