The Bank of England anticipates that in October, when inflation in the UK will hit 13.3%, it will surpass the previous record peak.
The UK’s consumer price index has reportedly reached double digits, the Office for National Statistics (ONS) reporting that inflation has reached its highest level in 40 years. The consumer price index increased 10.1% yearly in the 12 months leading up to July 2022, according to data released by the ONS on August 17. The amount is a significant increase from June’s 9.4% and is higher than the expected 9.8%. The record jump, according to the ONS, was responsible for an increase in housing and household services like gasoline, food, and beverages.
UK inflation spikes to its highest level in forty years as food prices increase.
The price at the pump is currently about £1.72 per liter in the UK, after recently almost topping £2. After falling under the £2 pricing threshold in June, the current price of diesel per litter is £1.84.
The ONS reports that rising food prices are the most recent factor in the UK’s alarmingly high inflation rate. In contrast, core inflation for the year ending in July 2022 was 6.2%. The proportion is higher than expected (5.9%), and it’s up from 5.8% in June.
The historical inflation rise in the UK was discussed by Kien Tan, director of retail strategy at PwC. Says Tan:
“Supermarkets, who are also dealing with unheard-of inflation in the cost of ingredients and raw materials, have little alternative except to pass on price hikes from suppliers.
The price of a pint of milk has reportedly increased by more than twofold at identical supermarkets since the beginning of the year, which has been particularly acute in labor and resource intensive categories like dairy.
The ONS reports that estimates for consumer price inflation range from about 11% in January to roughly 6.5% in December, and that this “suggests that the CPI rate would last have been greater around 1982.”