As cost of living continues to strain household budgets, food prices in the UK are increasing at their quickest rate in 42 years.
Bread, cereal, meat, and dairy prices all increased as food expenditures increased 14.6% in the year to September, marking the most significant increase in prices since 1980.
People are also struggling with rising energy and transportation prices simultaneously.
Overall, inflation measures how quickly prices are rising in the UK; it shot up to 10.1% last month and is predicted to continue to grow.
According to the ONS, the cost of most essential products in the typical household’s food shopping basket increased last month. These included fish, sugar, fruit, and rice.
According to experts, the war in Ukraine, which has hampered grain, oil, and fertilizer shipments from the region, has exacerbated the rise in food prices.
The recent drop in the pound’s value has increased the cost of imported goods and ingredients, which has also impacted food and beverage prices.
The ONS reports that after falling to 9.9% in August, total inflation returned to its 40-year peak in July.
According to the report, the price of furniture and hotel stays had also increased, albeit these increases had been somewhat offset by the declining cost of gas and airline tickets.
It occurs at a time when a BBC study reveals increased anxiety about the strain on finances. As opposed to 69% in a similar poll conducted in January, over 85% of those surveyed are now concerned about the rising expense of living.
As a result, 90% of individuals put off turning on the heater to save money.
After accounting for the significant increase in energy prices that began this month, the Bank of England predicts that inflation will reach 11% in October.
Residents comments on the rising food prices
The scenario is “frightening,” according to Jen Welch, owner of an artisan bakery, as her expenses increase quickly.
During the epidemic, she established the bakery in Sunderland, believing it would be the most challenging situation she would ever encounter.
But her essential commodities, including flour, butter, and oils, have “spiraled out of control” in price, and they now have monthly energy costs of more than £1,000 to pay.
The most recent official data are released as the new chancellor, Jeremy Hunt, works to combat the rising cost of living and the recent market volatility caused by the mini-budget of his predecessor.
Mortgage prices have risen to a 14-year high due to the volatility, raising costs for millions of people at a time when food and energy prices are also rising.
In response to Mr. Hunt’s claims, the government said it would “prioritize care for the neediest while delivering wider economic stability.”
Rising interest rates
According to experts, the most recent inflation data will force the Bank of England to raise interest rates at its next meeting in November.
The Bank wants to slow the rate of price increases by encouraging consumers to save more and spend less by hiking interest rates. Since December, rates have gone up seven times to push inflation back to the 2% target.
However, rising rates also result in higher borrowing costs for those with mortgages and businesses, and experts have warned that this could slow economic growth.
When the government’s support to freeze energy costs at £2,500 for the typical household goes into effect this October, the rise in the cost of living is anticipated to reach its peak.
However, as the government works to close a gap in the public finances, that assistance is anticipated to be curtailed starting in April, prompting predictions that costs might exceed £4,000.
Although Mr. Hunt has pledged to protect the most disadvantaged, he has not specified how he will do so or whether he will also support individuals with higher earnings.
The prime minister also acknowledged that she would raise pensions per inflation, but she hasn’t promised to do the same for benefits.