UK inflation has climbed to 9.1% as the cost of living crisis continues to squeeze household finances.
The consumer prices index (CPI) measure of inflation rose in the 12 months to May to its highest level since March 1982.
When inflation rises, it basically means that your money doesn’t go as far as it used to.
For example, if something cost £1 a year ago and the rate of inflation was 9% since that time it would cost £1.09 today.
Inflation also affects the spending power of any spare cash you have.
But while it's bad news for savings, supermarket shopping and private pensions, it is good news for groups like state pensioners.
In this week's Cost of Living: We're Here to Help Facebook Live, Mirror money reporter Sam Barker will be joined by Mirror head of business Graham Hiscott to talk you through what it means for you.
Sam and Graham will be discussing inflation live on The Mirror's Facebook page at 1pm today, June 16.
Send us your questions in advance at mirror.money.saving@mirror.co.uk
What happens when inflation rises?
The rate of inflation is increasing across the world - not just the UK - and there are several reasons why this is happening.
Household spending started to rise in early 2021 when the UK began easing coronavirus restrictions.
When people are spending more, it drives up demand and pushes up prices.
"Economies around the world, including in the UK, opened up after Covid restrictions eased. And then people naturally wanted to start buying things again," explains the Bank of England.
"But businesses selling some of those things couldn’t get enough of them to their customers. This caused prices to rise - especially for goods coming from abroad."
The Russian invasion of Ukraine earlier this year has also caused prices to rise, including a sharp increase in the cost of energy.
Agricultural commodities, such as grain, which are needed to produce food, have risen too off the back of the crisis.
The BoE also notes that “there are more job vacancies than there are people to fill them”.
This means employers are having to offer higher wages to attract job applicants, which is pushing up their costs and is reflected in their prices.
What items are rising in price?
The ONS said food and drink prices were the biggest contributor of rising inflation. The most dramatic increases seen were in the cost of bread, cereals and meat.
Market reach firm Kantar has forecast that the average annual grocery bill in the UK is set to rise by £380 this year.
The cost of gas and electricity has also surged, after the Ofgem price cap was raised by 54% in April.
Energy analysts at Cornwall Insights this week warned the October price cap could hit almost £3,000 - in what would mark another £1,000 rise for families on top of the current £1,971 April price cap.
Meanwhile, the price of fuel reached record highs in misery for drivers who rely on their car for work.
The price of raw materials, household goods, furniture and restaurants and hotels are also going up.
