Soaring inflation, fueled by rising petrol and food prices, is hitting the pockets of UK households, with the invasion of Ukraine blamed for rising oil prices
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UK inflation has risen to its highest level in 40 years as the cost of living crisis continues to hit UK households.
The Consumer Price Index (CPI), a measure of inflation, rose to 9% in the 12 months to March, according to the Office for National Statistics.
This is up from 7% in the previous month. The Bank of England has already forecast that inflation could exceed 10% this year.
The surge in inflation means this is one of the highest one-year increases in consumer prices since records began in 1989.
This is another stark reminder of the difficulties faced by ordinary Brits across the country.
The surge in inflation last month was fueled by an unprecedented rise in energy bills as the ceiling was allowed to rise to its all-time high, adding several hundred pounds to annual bills.
And it is believed that this will also contribute to the increase this month.
Prices across the economy have risen, with the biggest rise coming at the pump after Russia’s invasion of Ukraine impacted global oil prices.
Economists warned of today’s announcement, which comes a fortnight after the Bank of England hiked interest rates and warned the country could be headed for a recession.
Panmure Gordon’s chief economist, Simon French, previously said he would be “not at all surprised” if inflation hit 9% this week.
Office for National Statistics)
He said the latest figures are heavily influenced by the recent increase in household energy bills.
“There will be a big jump because April’s price cap is captured in it,” he added.
The government has come under fire for not doing enough to mitigate the impact of the cost of living crisis.
She also pushed extremely unpopular tax increases.
This all comes as M&S chairman Archie Norman said food prices could rise by as much as 10 per cent this year.
The former Tory MP who heads the lifted giant warned Brits face another brawl.
He told BBC Radio 4’s Today programme: “It wouldn’t be surprising if food price inflation came in at 8% to 10% over the course of the year.
“But we don’t know that yet because it’s been running all year, some things have gone through now, but some more are still to come.”
It came moments after official figures showed Britain’s unemployment rate fell to its lowest level in over 47 years – but workers have seen their wages fall as inflation rose.
Yesterday the governor of the Bank of England warned of “apocalyptic” food price increases due to the war in Ukraine.
Andrew Bailey used the eye-catching phrase when he admitted the situation was “very, very difficult” amid rising inflation.
And despite talks over whether rate hikes should be used to bring inflation under control, Mr Bailey admitted “there’s not much we can do, about 80% of it”.
What is inflation?
The CPI inflation measure shows how much the price of goods and services has risen or fallen over time.
For example, if something that cost £1 a year ago costs £1.02 today, that inflation rate would be 2%.
The inflation rate is published each month by the Office for National Statistics (ONS).
This measures how much the prices have changed on average in the last 12 months.
So for the ONS latest inflation announcement, this covers price changes from April 2021 to April 2022.
https://www.mirror.co.uk/money/breaking-uk-inflation-hits-worrying-26992990 UK inflation hits a 40-year high of nine percent as food and energy costs soar