Cost of living crisis: Mounting cost crisis sees inflation soar to fresh 40-year high

The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation rose to 9.4% in June, up from 9.1% in May.

This remains the highest level since February 1982 and heaps yet further cost pain on cash-strapped households and businesses.

Grant Fitzner, chief economist at the ONS, said: “Annual inflation again rose to stand at its highest rate for over 40 years.

UK inflation has surged to a fresh 40-year high as fuel and energy prices rocketed amid the cost-of-living squeeze, according to official figures.

“The increase was driven by rising fuel and food prices, these were only slightly offset by falling second-hand car prices.”

Newly appointed Chancellor Nadhim Zahawi and Bank of England governor Andrew Bailey have both pledged to get inflation under control.

Mr Zahawi said: “Countries around the world are battling higher prices and I know how difficult that is for people right here in the UK, so we are working alongside the Bank of England to bear down on inflation.”