Cost of Living: Inflation in UK hits 10.1% as cost of living continues to soar

The cost of living soared again in July, putting further strain on under-pressure families across the UK.

Consumer Prices Index inflation (CPI) reached 10.1% last month, beating expectations, the Office for National Statistics (ONS) revealed.

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The increase was largely down to food prices and staples including toilet rolls and toothbrushes, the ONS said.

Consumer Prices Index inflation (CPI) reached 10.1% last month, beating expectations, the Office for National Statistics (ONS) revealed. (Jane Barlow/PA Wire)
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The measure had been expected to reach 9.8%, according to an average of analysts’ estimates calculated by Pantheon Macroeconomics.

It is the biggest jump in the cost of living since February 1982, when CPI reached 10.4%, according to ONS estimates.

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It is also a massive jump from the 9.4% inflation in June.

Inflation is expected to fall back a little in August; however, according to estimates it could soar to 13.3% in October when the energy price cap rises again.

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The Bank of England thinks this could push the UK into a recession.

After CPI inflation was shown to reach 10.1% in July, ONS chief economist Grant Fitzner said: “A wide range of price rises drove inflation up again this month.

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“Food prices rose notably, particularly bakery products, dairy, meat and vegetables, which was also reflected in higher takeaway prices.

“Price rises in other staple items, such as pet food, toilet rolls, toothbrushes and deodorants also pushed up inflation in July.

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“Driven by higher demand, the price for package holidays rose, after falling at the same time last year, while air fares also increased.

“The cost of both raw materials and goods leaving factories continued to rise, driven by the price of metals and food respectively.”

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Responding to the rise in inflation, Chancellor Nadhim Zahawi said: “I understand that times are tough, and people are worried about increases in prices that countries around the world are facing.

“Although there are no easy solutions, we are helping where we can through a £37 billion support package, with further payments for those on the lowest incomes, pensioners and the disabled, and £400 off energy bills for everyone in the coming months.

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“Getting inflation under control is my top priority, and we are taking action through strong, independent monetary policy, responsible tax and spending decisions, and reforms to boost productivity and growth.”