As the Consumer Prices Index (CPI) increased to 10.1% in July, the UK’s inflation rate reached double digits for the first time in 40 years, the Office for National Statistics reported on Wednesday.
According to the ONS, the figure, which is up from 9.4% in June, is the highest since February 1982, when the CPI was at 10.4%.
The surge in inflation has been caused by rising energy, food, beverage, and transportation costs. Food and non-alcoholic beverage costs saw the biggest jump from June to July of this year, rising by 2.3%.
According to Grant Fitzner, chief economist at the ONS, “food prices grew noticeably, particularly bakery products, dairy, meat, and vegetables, which was also reflected in higher takeaway prices.”
Nadhim Zahawi, the finance minister, vowed on Wednesday to do everything in his power to find ways for Boris Johnson’s successor as prime minister, who will take office in September, to provide businesses and families with greater support as a result of growing expenses.
Despite the pressure, the two candidates, Liz Truss and Rishi Sunak, have not yet disclosed how they want to combat inflation.
In order to combat inflation, the Bank of England recently increased interest rates from 1.25 to 1.75%. In a statement, the Bank of England warned that inflation may reach 13% before the end of the year and predicted that the UK may experience a recession in the fourth quarter of 2022 and that the crisis may last into 2023.
