This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-63301383
The article has changed 9 times. There is an RSS feed of changes available.
| Version 7 | Version 8 |
|---|---|
| Soaring food prices push inflation to 40-year high | Soaring food prices push inflation to 40-year high |
| (4 months later) | |
| UK food prices are rising at their fastest rate in 42 years as the cost of living crisis continues to squeeze household budgets. | UK food prices are rising at their fastest rate in 42 years as the cost of living crisis continues to squeeze household budgets. |
| Food costs jumped 14.6% in the year to September - the biggest rise since 1980 - with bread, cereal, meat and dairy prices all climbing. | Food costs jumped 14.6% in the year to September - the biggest rise since 1980 - with bread, cereal, meat and dairy prices all climbing. |
| It comes as people also struggle with higher energy and transport costs. | It comes as people also struggle with higher energy and transport costs. |
| Overall inflation - the rate at which UK prices rise - surged to 10.1% last month and is expected to climb further. | Overall inflation - the rate at which UK prices rise - surged to 10.1% last month and is expected to climb further. |
| The prices of most key items in the average household's food shopping basket went up last month, including fish, sugar, fruit and rice, the Office for National Statistics (ONS) said. | The prices of most key items in the average household's food shopping basket went up last month, including fish, sugar, fruit and rice, the Office for National Statistics (ONS) said. |
| Experts say the rise in the cost of groceries has been accelerated by the war in Ukraine, which has disrupted grain, oil and fertiliser supplies from the region. | Experts say the rise in the cost of groceries has been accelerated by the war in Ukraine, which has disrupted grain, oil and fertiliser supplies from the region. |
| Food and drink prices have also been affected by the recent weakness in the pound, which has made imported products and ingredients more expensive. | Food and drink prices have also been affected by the recent weakness in the pound, which has made imported products and ingredients more expensive. |
| Karen Betts, chief executive of the Food and Drink Federation, said: "Food and drink manufacturers continue to do everything they can to keep product prices down, but huge rises in ingredient, raw material, energy and other costs mean they have no choice but to pass some price rises on." | Karen Betts, chief executive of the Food and Drink Federation, said: "Food and drink manufacturers continue to do everything they can to keep product prices down, but huge rises in ingredient, raw material, energy and other costs mean they have no choice but to pass some price rises on." |
| According to the ONS, overall inflation is back at the 40-year high seen in July after dipping to 9.9% in August. | According to the ONS, overall inflation is back at the 40-year high seen in July after dipping to 9.9% in August. |
| It said the cost of furniture and hotel stays had also risen - although these were partially offset by the falling price of petrol and airline tickets. | It said the cost of furniture and hotel stays had also risen - although these were partially offset by the falling price of petrol and airline tickets. |
| It comes as a BBC survey uncovers growing concern about the squeeze on finances. Some 85% of those asked are now worried about the rising cost of living, up from 69% in a similar poll in January. | It comes as a BBC survey uncovers growing concern about the squeeze on finances. Some 85% of those asked are now worried about the rising cost of living, up from 69% in a similar poll in January. |
| BBC experts on six things you can do as cost of living rises | BBC experts on six things you can do as cost of living rises |
| 'It used to be homeless people, now it's working people' | 'It used to be homeless people, now it's working people' |
| Try our Family £1 recipe meal plan | Try our Family £1 recipe meal plan |
| Why are prices rising so much? | Why are prices rising so much? |
| Are you setting up a warm bank? We want your stories | Are you setting up a warm bank? We want your stories |
| As a result, nine in 10 people are trying to save money by delaying putting the heating on. | As a result, nine in 10 people are trying to save money by delaying putting the heating on. |
| The Bank of England says inflation could peak at 11% in October, after inflation figures have factored in the big rise in energy bills that came in at the start of this month. | The Bank of England says inflation could peak at 11% in October, after inflation figures have factored in the big rise in energy bills that came in at the start of this month. |
| Jen Welch, who runs artisan bakery Bread&, says the situation is "scary" as her costs rise rapidly. | Jen Welch, who runs artisan bakery Bread&, says the situation is "scary" as her costs rise rapidly. |
| She set up the bakery in Sunderland during the pandemic and thought that would be the toughest experience she would face. | She set up the bakery in Sunderland during the pandemic and thought that would be the toughest experience she would face. |
| Jen Welch, who runs an artisan bakery, said costs for all key ingredients have gone up | Jen Welch, who runs an artisan bakery, said costs for all key ingredients have gone up |
| But the cost of her key ingredients such as flour, butter and oils have "spiralled out of control" and they face energy bills of more than £1,000 a month. | But the cost of her key ingredients such as flour, butter and oils have "spiralled out of control" and they face energy bills of more than £1,000 a month. |
| "You think to yourself, if we can [get through the pandemic], we can weather most storms," she told the BBC. "But maybe that's not the case." | "You think to yourself, if we can [get through the pandemic], we can weather most storms," she told the BBC. "But maybe that's not the case." |
| The latest official figures come as new Chancellor Jeremy Hunt attempts to tackle the rising cost of living, as well as the recent turmoil on financial markets sparked by his predecessor's mini-budget. | The latest official figures come as new Chancellor Jeremy Hunt attempts to tackle the rising cost of living, as well as the recent turmoil on financial markets sparked by his predecessor's mini-budget. |
| As a result of the volatility, mortgage prices have hit a 14-year high, driving up costs for millions at a time when energy and food bills are also rising. | As a result of the volatility, mortgage prices have hit a 14-year high, driving up costs for millions at a time when energy and food bills are also rising. |
| Mr Hunt said the government said he understood people were struggling and would "prioritise help for the most vulnerable while delivering wider economic stability". | Mr Hunt said the government said he understood people were struggling and would "prioritise help for the most vulnerable while delivering wider economic stability". |
| But shadow chancellor Rachel Reeves said: "Inflation figures this morning will bring more anxiety to families worried about the Tories' lack of grip on an economic crisis of their own making." | But shadow chancellor Rachel Reeves said: "Inflation figures this morning will bring more anxiety to families worried about the Tories' lack of grip on an economic crisis of their own making." |
| Rising interest rates? | Rising interest rates? |
| Experts said the latest inflation figures would put extra pressure on the Bank of England to hike interest rates at its next meeting in November. | Experts said the latest inflation figures would put extra pressure on the Bank of England to hike interest rates at its next meeting in November. |
| By raising rates the Bank aims to encourage people to save more and spend less, in the hope this will stop prices rising as fast. It has increased rates seven times in a row since December as it tries to bring inflation back down to its 2% target. | By raising rates the Bank aims to encourage people to save more and spend less, in the hope this will stop prices rising as fast. It has increased rates seven times in a row since December as it tries to bring inflation back down to its 2% target. |
| But higher rates also drive up borrowing costs for mortgage holders and businesses, with experts warning this could put a brake on economic growth. | But higher rates also drive up borrowing costs for mortgage holders and businesses, with experts warning this could put a brake on economic growth. |
| The rise in the cost of living is expected to peak this October, when government support to freeze energy bills at £2,500 for an average household comes into play. | The rise in the cost of living is expected to peak this October, when government support to freeze energy bills at £2,500 for an average household comes into play. |
| But that help is expected to be reduced from April as the government looks to plug a hole in the public finances, leading to warnings that bills could go above £4,000. | But that help is expected to be reduced from April as the government looks to plug a hole in the public finances, leading to warnings that bills could go above £4,000. |
| Mr Hunt has promised to protect the most vulnerable but not said what help they will get, or whether those on higher incomes will be supported. | Mr Hunt has promised to protect the most vulnerable but not said what help they will get, or whether those on higher incomes will be supported. |
| In addition, while the prime minister confirmed she would increase pensions in line with inflation, she has not committed to do the same for benefits. | In addition, while the prime minister confirmed she would increase pensions in line with inflation, she has not committed to do the same for benefits. |
| Related Topics | |
| Economics | |
| Inflation | |
| Cost of living | |
| UK economy |