Inflation in Britain has hit a 40-year high after it hit 10.1 per cent last month, heaping more pressure on families already struggling to pay bills. According to the Office for National Statistics (ONS) the Consumer Prices Index inflation (CPI) reached 10.1 per cent in July, beating expectations.
The increase was largely down to food prices and staples including toilet rolls and toothbrushes, the ONS said. The measure had been expected to reach 9.8 per cent, according to an average of analysts' estimates calculated by Pantheon Macroeconomics.
It is the biggest jump in the cost of living since February 1982, when CPI reached 10.4 per cent, according to ONS estimates. It is also a massive jump from the 9.4 per cent inflation in June.
Inflation is expected to fall back a little in August; however, according to estimates, it could soar to 13.3 per cent in October when the energy price cap rises again. The Bank of England thinks this could push the UK into a recession.
Responding to the rise in inflation, Chancellor Nadhim Zahawi said: "I understand that times are tough, and people are worried about increases in prices that countries around the world are facing.
"Although there are no easy solutions, we are helping where we can through a £37billion support package, with further payments for those on the lowest incomes, pensioners and the disabled, and £400 off energy bills for everyone in the coming months.
"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."
