Inflation: Food Bills See Price Rises Return To 40-Year High
October 19, 2022
The increase in the cost of living accelerated to 10.1% in September as living costs continued to hit household budgets.
Inflation - a measure of price rises - returned to the 40-year high it hit in July after food prices soared, official figures show.
It was above the expectations of economists, who had predicted a figure of 10%.
The Bank of England has said inflation could peak at 11% this year.
The Office for National Statistics (ONS) said Consumer Prices Index inflation had hit 10.1% in September, after seeing a slight dip to 9.9% in August.
The increase in the cost of living was driven by largely by energy bills and food prices.
The soaring price of bread, cereal, meat and dairy products pushed food prices higher in the year to September.
Overall, the cost of food jumped by 14.5% compared with the same month last year, representing the largest annual rise for 40 years.
ONS director of economic statistics Darren Morgan said: "After last month's small fall, headline inflation returned to its high seen earlier in the summer.
"These rises were partially offset by continuing falls in the costs of petrol, with airline prices falling by more than usual for this time of year and second-hand car prices also rising less steeply than the large increases seen last year," he said.
"While still at a historically high rate, the costs facing businesses are beginning to rise more slowly, with crude oil prices actually falling in September."
September's inflation figures are usually used to calculate next April's rise in the state pension and the increase in some benefits.
It is unclear, however, if the government still intends to stick to this policy or cut down on its spending by increasing payments by a lower level by linking the rise to wages instead.
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