UK inflation hits 10.1 percent, highest in 40 years – POLITICO

U.Okay. shopper worth inflation hit 10.1 p.c in the 12 months to July, leaping from 9.4 p.c in June to its highest level since February 1982, in response to data launched right this moment by the Office for National Statistics (ONS).

High meals costs have been the principle driver of the spike, rising at an annual charge of 12.7 p.c in July, up from 9.8 p.c in June. According to the ONS, the annual charge of inflation for meals and non-alcoholic drinks was final greater in August 2008, through the world monetary disaster, when it reached 13.2 p.c.

The ONS mentioned the Consumer Price Index, together with proprietor occupiers’ housing prices, rose by 8.8 p.c in the 12 months to July, up from 8.2 p.c in June. The largest contributor to that enhance got here from electrical energy, gasoline and different fuels, transport, and foods and drinks the ONS mentioned.

(*40*) and power prices have been spiking throughout Europe because of Russia’s battle on Ukraine.

The Bank of England projects inflation to speed up to 13 p.c in the ultimate quarter this 12 months and stay at very elevated ranges all through a lot of 2023 earlier than falling to the two p.c goal in 2024.