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Inflation rises again to 9.1%, a new 40-year high

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The cost of basic goods continues to shoot up (Image: PA)

Inflation rose again in May in the latest sign Cost pressures are here to stay.

New data showed the consumer price index edged up to 9.1% in May
9% in April.

The Office for National Statistics estimates that the rate of increase in the cost of basic necessities is now steeper than at any time in 40 decades.

Energy prices continue to be the main driver of inflation, as well as supply chain issues related to the pandemic.

Most analysts were expecting another rise this month and more of the same over the course of the year.

The Bank of England has forecast that interest rates will reach 11% by Christmas, a level unthinkable 12 months ago.

ONS chief economist Grant Fitzner said that “historically high levels” in commodities such as food and fuel “were offset by a fall in the cost of clothing by less than around this time last year and a fall in often-volatile computer game prices.”

He added: “Prices of goods leaving factories rose at their fastest pace in 45 years, driven by widespread increases in food prices, while the cost of raw materials rose at an unprecedented pace.”

Reacting to the latest inflation figures, Rishi Sunak said: “I know people are concerned about the rising cost of living, which is why we have taken targeted action to help families and made £1,200 available to the eight million most vulnerable households to have.

“We are using all the tools at our disposal to bring down inflation and combat rising prices, we can build a stronger economy through independent monetary policies, responsible fiscal policies that do not increase inflationary pressures, and by increasing our long-term productivity and Growth.’

This is breaking news, more coming soon… Check back soon for more updates.

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https://metro.co.uk/2022/06/22/inflation-rises-again-to-9-1-in-new-40-year-high-16869524/ Inflation rises again to 9.1%, a new 40-year high

Justin Scacco

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