As the cost of living issue continues to strain household budgets, food prices in the UK are increasing at their quickest rate in 42 years.
Bread, cereal, meat, and dairy prices all increased as food expenditures increased 14.6% in the year to September, the highest increase since 1980.
It occurs when consumers are also struggling with rising energy and transportation prices.
The overall inflation rate, which measures how quickly prices are rising in the UK, shot up to 10.1% last month and is predicted to continue to grow.
According to the (ONS) Office for National Statistics, the cost of most essential products in the typical household’s food shopping basket increased last month. These include fish, sugar, fruit, and rice.
According to experts, the war in Ukraine, which has disrupted the supply of grain, oil, and fertilizer from the region, has sped up food prices.
The recent decline in the pound’s value, which has increased the cost of imported goods and materials, has also impacted food and beverage prices.
The ONS reports that after falling to 9.9% in August, total inflation is again at a 40-year high in July.
It said that the price of furniture and hotel stays had also increased, but these increases had been somewhat offset by the declining cost of gas and airline tickets.
It occurs at a time when a BBC study reveals rising anxiety over the strain on money. Approximately 85% of those surveyed are now concerned about the growing cost of living, up from 69% in a similar poll in January.
As a result, 90% of individuals delay turning on the heater to save money.
After accounting for the significant increase in energy prices that began this month, the Bank of England predicts that inflation might reach 11% in October.
Residents complain of rising food prices
Owner of an artisan bakery, Jen Welch, calls the situation “frightening” as her expenses increase quickly.
She opened the bakery in Sunderland during the epidemic and anticipated that it would be the most challenging situation she would encounter.
However, the price of her essential supplies, such as flour, butter, and oils, has “spiraled out of control,” and they now have energy costs of more than £1,000 per month.
The most recent official data are released as the new chancellor, Jeremy Hunt, works to combat the rising cost of living and the recent market volatility brought on by his predecessor’s mini-budget.
Mortgage prices have risen to a 14-year high due to the volatility, increasing costs for millions of people at a time when food and energy prices are also rising.
Mr. Hunt claimed that the government had recognized the difficulties individuals were facing and that it would “prioritize assistance for the most vulnerable while delivering wider economic stability.”
Increasing interest rates
According to experts, the Bank of England will be under pressure to raise interest rates at its next meeting in November due to the most recent inflation data.
The Bank wants to slow the rate of price increases by encouraging consumers to save more and spend less by increasing interest rates. To pull inflation back to its objective of 2%, rates have been raised seven times since December.
However, rising rates also result in higher borrowing costs for those with mortgages and businesses, and economists have warned that this could slow economic growth.
When government support to freeze energy bills at £2,500 for a typical household goes into effect in October, the increase in the cost of living is anticipated to reach its peak.
However, as the government works to close a gap in the public finances, that assistance is anticipated to be curtailed starting in April. As a result, there have been concerns that costs might exceed £4,000.
Although Mr. Hunt has pledged to safeguard the neediest, he has not specified what assistance they will receive or if individuals with more outstanding salaries will also be helped.
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In addition, while the prime minister stated she would raise pensions in line with inflation, she has not promised to do the same for benefits.
