INFLATION has hit a 40-year high of 10.1%, according to new figures from the Office of National Statistics.
The consumer price index (CPI) measure of inflation shot up to double figures in the 12 months to July – up from 9.4% in June.
How inflation has changed over time
Today’s inflation rate is the highest since 1982, the ONS said.
Inflation is a measure of how the price of goods and services have changed over the past year.
When it goes up it means prices on everyday items, essentials, fuel and bills are higher – which means budgets are being squeezed.
The soaring rate reflects the current cost of living crisis, with millions of people grappling with rising energy bills, petrol prices and grocery costs.
But struggling households are still being warned that the worst is yet to come – it is expected that inflation will top 13% by the end of the year.
There are warnings it could push the UK into a recession, according to the Bank of England.
The rise will come as the energy price cap, which regulates what more than 20 million households will pay for their gas and electricity, rises in October.
It is set to hit around £3,635, according to the latest predictions – an 8.4% rise from today’s already record high cap.
The inflation rate is so-called backward looking measure, which means it shows how prices have changed over the past 12 months – it does not predict the future.
Rising food prices is the main driver behind the latest inflation figures from the Office for National Statistics (ONS).
ONS chief economist Grant Fitzner said prices of bakery goods, dairy, meat and vegetables and takeaways were notably higher.
He added: “Price rises in other staple items, such as pet food, toilet rolls, toothbrushes and deodorants also pushed up inflation in July.”
The cost of package holidays also rose and air fares increased.
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