UK inflation hits 40-year high after hitting 10.1% last month, increasing pressure on families already struggling to pay bills . According to the Office for National Statistics (ONS), the Consumer Price Index (CPI) reached 10.1% in July, better than expected. The increase of
is mainly due to the price of groceries and basic necessities such as toilet paper and toothbrushes, ONS said. The indicator was expected to reach 9.8%, according to an average of analyst estimates calculated by Pantheon Macroeconomics.
This is the largest increase in the cost of living since February 1982, when theCPI reached 10.4%, according to ONS estimates. It is also up significantly from 9.4% inflation in June.
Inflation is expected to ease slightly in August. But estimates suggest he could rise to 13.3% in October when the energy price cap rises again. The Bank of England believes this could push the UK into recession.
In response to rising inflation, Prime Minister Nadim Zahawi said: There are no easy solutions. We are helping as much as we can through his £37bn support package and in the coming months more will be paid to the lowest income earners, pensioners and people with disabilities, all person will get his £400 discount on his utility bills.
"Keeping inflation under control is my top priority, and I am taking action through strong and independent monetary policy, responsible tax and spending decisions, and reforms to boost productivity and growth.
