UK consumer price inflation hit 10.1% in the 12 months to July, rising from 9.4% in June to its highest level since February 1982, data showed today by the Office for National Statistics (ONS).
High food prices were the main driver of the surge, rising at an annual rate of 12.7% in July, from 9.8% in June. According to the ONS, the annual inflation rate for food and non-alcoholic beverages was last higher in August 2008, during the global financial crisis, when it reached 13.2%.
The ONS said the consumer price index, including homeowners’ housing costs, rose 8.8% in the 12 months to July, from 8.2% in June. The biggest contributor to the increase came from electricity, gas and other fuels, transport and food and drink, the ONS said.
Food and energy prices have soared across Europe following Russia’s war on Ukraine.
The Bank of England expects inflation to accelerate to 13% in the final quarter of this year and remain at very high levels for much of 2023 before falling to the 2% target in 2024.