London, United Kingdom (UK)- UK’s inflation rate has hit a 40-year high reaching 9.1 percent, as a result of the rise in the cost of food and non-alcoholic beverages.
According to the Office for National Statistics (ONS), which compiled the latest stats ending May 2022, prices were 10 percent higher than last May, and for half of the categories measured, they rose by 7 percent or more.
In addition, the ONS said fuel and raw material prices were up by more than 22 percent year on year, the fastest rate since modern records began in 1985 and the price of goods leaving factories is increasing at an annual rate of 15.7 percent, up from 14.7 percent in April
“The price of goods leaving factories rose at their fastest rate in 45 years, driven by widespread food price rises, while the cost of raw materials leapt at their fastest rate on record,” said ONS’ chief economist, Grant Fitzner.
In the latest figures, the retail prices index, used to calculate the uplift on index-linked bonds, rose to 11.7 percent in May from 11.1 percent in April, marking the highest reading for the measure since October 1981.
Economists expect the rate to lurk within the 9 percent to the 10 percent range in the coming months before leaping again in October when the next adjustment to the energy price cap is implemented.
“I know that people are worried about the rising cost of living, which is why we have taken targeted action to help families, getting £1 200 (US$1 470) to the eight million most vulnerable households. We are using all the tools at our disposal to bring inflation down and combat rising prices we can build a stronger economy through independent monetary policy, a responsible fiscal policy which doesn’t add to inflationary pressures, and by boosting our long-term productivity and growth,” read a statement from the Chancellor of the Exchequer, Rishi Sunak.
