Inflation in the UK hit another 40-year high in May, reaching 9.1%, the highest level since 1982.
Fueled by last month’s rise in food prices, the increase was in line with economists’ expectations for inflation to rise further in the coming months, reaching double digits by the fall.
The Bank of England expects inflation to exceed 11% in October, significantly higher than other similar countries in the G7.
Rising inflation will increase cost-of-living pressures on households, increase wage increases to offset the need for higher prices, and make it more difficult to resolve industrial disputes such as railways.
Prices of goods and services generally rose. Food prices rose 1.5% for the month alone, with bread, grains and meat rising the fastest.
In May, the National Bureau of Statistics said road fuel prices rose 32.8 percent from a year earlier, the largest annual increase in such prices since the detailed index was first compiled in 1989.
Grant Fitzner, chief economist at the ONS, added that inflation in UK factories was still rising, a sign that price pressures were still building. “The price of manufactured goods rose at the fastest pace in 45 years, driven by a general rise in food prices, while the cost of raw materials jumped at the fastest pace on record,” he said.
Chancellor Rishi Sunak said in a statement: “We are using all the tools at our disposal to reduce inflation and fight rising prices – through independent monetary policy, responsible fiscal policy Build a stronger economy to deal with inflationary pressures and improve our long-term productivity and growth.”