In May, the UK reached the highest level of inflation rates since 1982, reaching to 9.1%. This has all been fuelled by high food prices, which rose 1.5% alone with bread, cereal and meat rising the fastest. The Bank of England is expecting the rate to exceed 11% in October, adding more pressure
The Office for National Statistics (ONS) said:
Road fuel prices were 32.8% higher than a year earlier, the largest annual jump in prices seen in this category since detailed indices were first compiled in 1989.
Grant Fotzner, ONS chief economist added:
The price of goods leaving factories rose at their fastest in 45 years, driven by widespread food prices, while the cost of raw materials leapt at their fastest rate on record.
Chancellor Rishi Sunak said:
We are using all the tools at our disposal to bring down inflation and combat prices, we can build a stronger economy through independent monetary policy, responsible fiscal policy which doesn’t add to inflationary pressures, and boosting our long-term productivity and growth.