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Rising food prices push UK inflation to 10.1%

Updated: Apr 23


grocerry shop

Price increases return to a 40-year high due to rising bread and meat expenses.


In response to the inflation statistics, Chancellor Jeremy Hunt stated that the government would prioritize aiding the neediest.


"I understand that households across the nation are having a hard time dealing with increased pricing and greater energy bills," he said.


The rate of price growth, or inflation, increased to 10.1% in September as growing living expenses continued to strain household finances.


According to government statistics, the price of bread, cereals, meals, and dairy all increased, marking the largest increase in food prices since 1980.


According to the Bank of England, this year's inflation could reach a top of 11%.


After a minor decline to 9.9% in August, the Office for National Statistics (ONS) reported that inflation had reached 10.1% in the year ending in September, beating forecasts from experts.


The most disadvantaged people will receive priority assistance from this government, which will also work to stabilize the economy as a whole and promote long-term growth that benefits everyone.


With the government's energy price guarantee containing peak inflation, "we have taken urgent action to prevent homes and businesses from large increases in their energy costs this winter."



Food costs are still driving up inflation.


The Office for National Statistics (ONS) reports that similar to last month, food and non-alcoholic beverages contributed most to the increase in the annual inflation rate in September 2022.


In the 12 months leading up to September 2022, prices for food and non-alcoholic beverages increased by 14.6%, up from 13.1% in August.


Bread and cereals, meat products, milk, cheese, and eggs saw the most price increases between August and September 2022 compared to the same two months in 2021.


According to the ONS, the major downward contributor to the change in rates has been the ongoing decline in the price of gasoline and diesel.


For many people, this morning's inflation statistics are a headache. But they also cause problems for the government.


Prior to Liz Truss becoming prime minister earlier this year, the plan called for benefit increases at the rate of inflation.


Truss had also committed to raising pensions by the inflation rate.


However, there will be a significant cut in spending to close the national budget imbalance. So, can either be funded by the government?


The promises made about the state pension have not been honored.


Additionally, no benefits guarantees have been made.


The inflation rate for September has increased to its peak of 10.1% from July.


The previous time it exceeded 10% was in February 1982 when it reached 10.2%, therefore this marked a 40-year high.


The most recent inflation rate is marginally higher than what economists had anticipated.



People worrying about basics like heating and eating


According to the BBC survey, people's concerns about the growing cost of living are primarily related to energy, food, and fuel.


However, some people do have chances to reduce consumption and prices in all of those categories of spending.


Not everyone can delay turning on the heating, but 90% of study respondents said they would at least attempt it.


Charities and consumer advocacy organizations have emphasized the advantages of batch cooking, using public transportation when possible, and letting clothes air dry rather than always using the tumble dryer.


However, they do state that for those who are most in need, the public activity must be accompanied by financial help from the government.



Why are prices escalating so quickly?


Energy costs are one of the key causes of inflation right now, as oil and gas prices are still high in part because of the conflict in Ukraine.


Russia is one of the greatest oil and gas exporters, but as nations have made efforts to lessen their reliance on Russian supplies, demand for other producers has increased, pushing prices up.


Additionally, the war has contributed to price rises for food, gasoline, and fuel.


Some of the world's largest agricultural and food producers are Russia and Ukraine, and the invasion and following sanctions have interrupted supplies.

Additionally, there have been notable rises in the prices of food, lodging, and other basic necessities as well as in the cost of raw materials.


And for some homeowners, increased interest rates result in more expensive mortgage payments.



Are wages keeping up with inflation?


Many people's pay increases aren't keeping up with the inflation rate.


This makes it tougher for people to buy products and pay their expenses because their money doesn't stretch as far.


In the three months leading up to August 2022, the average wage, excluding incentives, increased by 5.4%.


Those with jobs in the private sector saw a gain in the pay of 6.2%, while those with jobs in the public sector saw a 2.2% increase.


Overall, after accounting for inflation, average pay actually decreased by 2.9%.


According to unions, pay should be commensurate with living expenses. However, the government claims that because businesses might raise prices to pay for greater wages, inflation may rise even further.



How much are prices rising for you?


Each month, the inflation rate is updated to reflect the estimated rate of price growth for all products and services in the economy.


The figure was 9.9% in the 12 months leading up to August 2022. Consequently, items that cost £1 in August 2021 would cost nearly £1.10 at the same period the following year.


personal inflation calculator, developed by the Office for National Statistics (ONS) in partnership with the BBC, displays a household's inflation rate as well as the expenses in the budget that have increased in price the most over the previous 12 months.


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