Inflation rises to 40-year high
The Office for National Statistics says it went up to 9.4 per cent last month
Last updated 20th Jul 2022
UK inflation has surged to a fresh 40-year high.
It's as fuel and energy prices rocketed amid the cost-of-living squeeze, according to official figures from the Office for National Statistics.
It reports Consumer Prices Index (CPI) inflation rose to 9.4% in June, up from 9.1% in May.
This remains the highest level since February 1982.
It puts more cost pressures on cash-strapped households and businesses.
Grant Fitzner, chief economist at the ONS, said: "Annual inflation again rose to stand at its highest rate for over 40 years.
"The increase was driven by rising fuel and food prices, these were only slightly offset by falling second-hand car prices."
Newly appointed Chancellor, Nadhim Zahawi and Bank of England Governor, Andrew Bailey, have both pledged to get inflation under control.
Mr Zahawi said: "Countries around the world are battling higher prices and I know how difficult that is for people right here in the UK, so we are working alongside the Bank of England to bear down on inflation."
Shadow Chancellor, Rachel Reeves, said the inflation figures showed there was a need for more than just "sticking plasters" to fix the economy.
"The cost-of-living crisis is leaving families more worried every day, but all we get from the Tories is chaos, distraction and unfunded fantasy economics," she said.
"Rising inflation may be pushing family finances to the brink, but the low-wage spiral facing so many in Britain isn't new.
"It's the result of a decade of Tory mismanagement of our economy meaning living standards and real wages have failed to grow."
The cost of living crisis:
Interest rates and inflation go up
Inflation rose by 8.8% in the 12 months to January 2023, down from 9.2% in December 2022. With interest rates also rising to 4%, those saving money will earn more interest on their finances, whilst those paying mortgages would pay more interest to the bank.
Energy bills
The price of energy went up incredibly as the cost of living crisis hit, with the gas price spike caused largely by the war in Ukraine. The price cap - which is set by an independent regulator to help offset costs onto customers - was set to rise to £3,549 for an average home in October but a price freeze from the government restricted the typical bill to £2,500. That's still an increase of 27% from the previous energy cap and as it's a cap on unit cost, the more energy you use the higher your bill will be.
Food prices
The cost of a weekly shop also has gone up as a result of the cost of living crisis. As a result of the war in Ukraine, a number of products including cooking oils and wheat have been disrupted. This means that several products are now considerably more expensive, driving bills up for customers.
Prices at the pumps
The average cost of petrol has also rose to unprecedented levels. Supply lines for petrol have been thrown into doubt as a result of the war in Ukraine, as Russia is a large export partner for gas, oil and fuel. In April 2022, the average price for a litre of petrol on the forecourt was 160.2p, whilst a litre of diesel would cost 170.5p. By late June 2022 the price had risen to an average of 190.9p for a litre of unleaded and 198.9p for a litre of diesel. In March 2023 the price wass on average of 147.03 in petrol and 167.04 in diesel.
Average cost of filling up a car with petrol hits £100
On 9th June 2022, the average cost of filling up a car with petrol hit £100 for the first time ever. Diesel had already hit that milestone. It comes as the cost of fuel hit a record high of one pound eighty a litre. The 2p rise was the biggest daily jump in 17 years. Prices have dropped by at least 20p per litre since the high point.