Inflation rises to 9.4% on a 40-year high as the cost-of-living crisis bites – while the Bank of England chief points to a 1.75% rate hike
The rate of the consumer price index inflation rose to 9.4 percent in June from 9.1 percent in May, the Office for National Statistics said.
Grant Fitzner, chief economist for the Office for National Statistics (ONS), said: “Annual inflation has risen again to its highest level in over 40 years.
“The increase was driven by rising fuel and food prices, only marginally offset by falling used car prices.
“The cost of both raw materials and goods leaving factories continued to rise, driven by higher metal and food prices respectively.
“These increases caused commodities to post their highest annual rise on record, with finished goods hitting a 45-year high.”
Chancellor Nadhim Zahawi said: “Countries around the world are fighting higher prices and I know how difficult this is for people here in the UK, so we are working with the Bank of England to try to curb inflation.
“We have introduced £37 billion in aid to households, including at least £1,200 for 8 million of the most vulnerable families and collecting over £2 million more of the lowest-paid personal taxes.”
It comes after the Bank of England last night hinted at the steepest rate hike in almost 30 years.
Governor Andrew Bailey said a 0.5 percentage point hike in interest rates to tackle rising inflation is “on the table” when the bank’s monetary policy committee meets in two weeks.
That would be the biggest hike since 1995 and would take interest rates to 1.75 percent, the highest since December 2008.
Mr Bailey said the bank would “act with vigour” if it saw signs of inflation embedded in the economy.