UK inflation hits double digits, a new 40-year high, as cost of living continues to soar
- UK’s Consumer Prices Index (CPI) accelerated to 10.1 per cent last month, the highest since 1982
- The increase was largely down to food prices and staples including toilet rolls and toothbrushes
British inflation surged to a new 40-year high in July on rising food prices, official data showed Wednesday, adding to a cost-of-living crisis as the country faces the prospect of recession.
The Consumer Prices Index (CPI) accelerated to 10.1 per cent last month from 9.4 per cent in June – a 40-year record at the time – the Office of National Statistics said.
The Bank of England warned earlier this month that inflation will climb to just over 13 per cent this year, the highest level since 1980.
It also projected that the country would enter a recession that would last until late 2023, with official data last week showing Britain’s economy shrank in the second quarter.
“I understand that times are tough, and people are worried about increases in prices that countries around the world are facing,” said finance minister Nadhim Zahawi following the release of the latest inflation data.
“Getting inflation under control is my top priority, and we are taking action through strong, independent monetary policy, responsible tax and spending decisions, and reforms to boost productivity and growth,” Zahawi said.