UK inflation has soared to a new 40-year high of 10.1%,figures released this morning from the Office of National Statistics show
Prices rose up by 0.7 points from 9.4% in the previous month and is higher than market expectation.
Chancellor Nadhim Zahawi said:
I understand that times are tough, and people are worried about increases in prices… Although there are no easy solutions, we are helping where we can… Getting inflation under control is my top priority, and we are taking action…”
Shadow Chancellor Rachel Reeves said: “We must get a grip on rising inflation leaving families worried sick about making ends meet.”
Adding that “The Tories are busy fighting and ignoring the scale of this crisis”.
Rebecca McDonald, Chief Economist at the Joseph Rowntree Foundation, said:
“Inflation, which has risen to 10.1% today, is eating away at people’s pay and leaving millions adrift in a cost of living crisis. No one can disagree this is a national emergency. Today’s sobering reading means the next few months will be profoundly more difficult for low income families almost certainly experiencing a higher degree of inflation themselves.
“People are looking for a sign that help is on the way. Yet the government doesn’t seem to have grasped the full scale and urgency of this situation.
“Energy bills for low-income households are expected to be £1,800 higher this year than last, and other costs such as food are expected to rise by £1,000 at the same period. That’s why JRF and 70 other charities called on the UK’s next Prime Minister to pledge the £1,200 in core support to households on means-tested benefits should be at least doubled.
“It’s not just rising energy bills that are squeezing low-income families. Food prices have risen by 12.6% over the last year. So while today’s double digit analysis may come as a shock, it’s no surprise to people who can’t afford the same essentials they could a year ago.
“Planning for a substantial support package, at least double what’s been offered, needs to start immediately. Without one, vulnerable people will face a catastrophe on a vast scale when winter sets in.”
Alpesh Paleja, CBI Lead Economist, said:
“Inflation figures continue to paint a worrying picture for consumers and businesses alike, and price pressures are set to build further. With a hefty climb in Ofgem’s energy price cap expected in October, CPI inflation will comfortably rise into double-digits over the months ahead.
“The cost-of-living crisis is now very real for both households and businesses, so there needs to be a concrete way forward to support vulnerable groups with higher energy bills.
“But we also need to think about the longer term: incentivising investment in the energy transition is key to reducing our exposure to global price shocks, and bolstering the UK’s energy security. Taking overdue actions to shore up potential growth – for example, adding immediate flexibility to the Apprenticeship Levy for one year – will also build resilience to price pressures over the long term.”
