Prices rise at fastest rate in 40 years as families struggle with cost of living

The rate of inflation in the UK hit a 40 year high in April, up from 7% in March to 9% in April, meaning prices have risen at their fastest rate in 40 years.

Economists have blamed it on soaring energy bills and the war in Ukraine, with around three-quarters of the increase coming from utility bills.

It was the fastest measured rate since records began in 1989, and the ONS estimates it was the highest since 1982.

Grant Fitzner, chief economist at the Office for National Statistics (ONS), said: "Inflation rose steeply in April, driven by the sharp climb in electricity and gas prices as the higher price cap came into effect.

"Steep annual rises in the cost of metals, chemicals and crude oil also continued, along with higher prices for goods leaving factory gates.

"This was driven by increases for food products, transport equipment and metals, machinery and equipment."

"We cannot protect people completely"- Chancellor

Responding to this morning's figure, Chancellor Rishi Sunak said: “Countries around the world are dealing with rising inflation. Today’s inflation numbers are driven by the energy price cap rise in April, which in turn is driven by higher global energy prices.

“We cannot protect people completely from these global challenges but are providing significant support where we can, and stand ready to take further action.

“We’re saving the average worker £330 a year through reducing National Insurance Contributions, changing Universal Credit to save over a million families around £1,000 a year, and providing millions of families with £350 each this year to help with their energy bills.”

Labour calls on MPs to back an Emergency Budget

Labour have reiterated calls for an Emergency Budget to deal with the cost of living crisis, warning families are "already stretched".

Shadow chancellor Rachel Reeves said "we can't wait any longer for action from this out of touch government" ahead of vote in the Commons later today.

She's told Tory MPs to back Labour's proposals, after a windfall tax on oil and gas companies was rejected last night.

Meanwhile, business leaders have warned there's a "real chance of a recession" later this year.

The British Chambers of Commerce have called on the Chancellor to reverse the rise in National Insurance Contributions and cut VAT on business energy bills to 5%.

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