Inflation is running in double digits for the first time in more than 40 years, grim new data has confirmed.
The Consumer Price Index inflation rate rose to 10.1% in July, a jump from 9.4% in June, the Office for National Statistics said.
It’s the latest dire news on the cost of living outlook as Britain braces for a long, harsh winter.
The Bank of England expects the country to slip into recession when energy prices for households and businesses soar again.
Families face the biggest drop in their standard of living in a generation as prices, bills, taxes and interest rates rise.
The rise in inflation figures, which exceeded predictions that it would be in the high end of 9%, was attributed to rising prices for food and basic goods, including toilet paper rolls and toothbrushes.
It is the biggest jump in the cost of living since February 1982, when the CPI hit 10.4%, according to ONS estimates.
The confirmation of the price increase comes as experts warn that energy prices, the main driver of inflation, could rise even higher than previously thought.
Consulting firm Auxilione added almost £200 to its earlier estimate for the spring after more turmoil in the global market.
He predicted that Ofgem could set the maximum price at £5,456 by April 2023.
The Bank forecasts that changes to the energy price cap could see inflation reach more than 13% in the winter after some modest declines in the coming months.
In response to rising inflation, Foreign Minister Nadhim Zahawi said: “I understand that times are tough and people are worried about the price increases that countries around the world are facing.”
“Although there are no easy solutions, we are helping where we can through a £37bn support package, with extra payments for those on lower incomes, retired and disabled, and £400 off energy bills. for everyone in the coming months.
“Controlling inflation is my top priority, and we are taking action through strong and independent monetary policy, responsible fiscal and spending decisions, and reforms to boost productivity and growth.”
Get in touch with our news team by emailing us at email@example.com.
For more stories like this, check our news page.