Analysis: Chancellor sought to deflect criticism of rising rate by citing global factors but hinted of support
- UK inflation hits 40-year high of 9%
- Business live updates: poorest households face highest inflation
- View from a checkout: ‘now it’s people stealing everyday things’
The re-emergence of inflation as a serious problem has been rapid and dramatic. This time a year ago, the government’s preferred way of measuring the cost of living showed prices had risen by 1.5% over the previous 12 months. The latest figure is 9% – a rate the UK has not experienced in more than 40 years – and there is worse to come.
April’s figure was fractionally lower than the 9.1% economists had expected but that was the extent of the good news. Inflation is now running at almost double the level anticipated by the Bank of England six months ago and looks set to rise above 10% when energy bills go up again in the autumn.
